The renewable purchase obligation (RPO) specified by the union power ministry for the last three financial years was 17.5 per cent in FY20, 19 per cent in FY21, and 21 per cent in FY22. However, compliance by state distribution companies has been very low.
The new trajectory is in line with the country’s clean energy commitments but a challenge for financially ailing power distribution utilities.
The central government has asked state regulatory commissions to fix obligations for their distribution companies over and above the trajectory specified by it. The renewable purchase obligation (RPO) specified by the union power ministry for the last three financial years was 17.5 per cent in FY20, 19 per cent in FY21, and 21 per cent in FY22. However, compliance by state distribution companies has been very low.
As per the Electricity Act 2003, the state electricity regulatory commissions (SERCs) are required to fix a minimum percentage of the total consumption of electricity by a distribution company for purchase from renewable energy sources.
As per the trajectory prepared till FY30 by the union ministries of power and renewable energy, the RPO targets will increase gradually from 24.6 per cent in FY23 to 47.33 per cent in FY30. The government has fixed separate trajectories for wind power, hydro power, energy storage and other energy sources.
The wind RPO starts this year with 0.81 per cent till 6.94 per cent in FY30. Similarly, the hydro power obligation will be increased from 0.35 per cent in the current fiscal to 2.82 per cent in eight years.
Glasgow Summit Energy storage obligation has been pegged at 1 per cent for FY24 to be scaled up to 4 per cent in FY30. The balance under ‘other RPO’ has been fixed at 23.44 per cent this fiscal for 33.57 per cent in FY30. At the COP26 climate summit in Glasgow in November 2021, India committed to achieving 500 GW non-fossil energy capacity by 2030 and meeting 50 per cent of energy requirements through renewable energy.
