India, May see a Shot up in the Tune of Renewable Purchase Obligation in Coming Years with GOAR-2022 in Picture

RPO Know How & State Wise Trajectory

2.1 RPO know how

Background

The Government of India’s policy initiatives have led to a tremendous growth and development of renewable energy (RE) sector in the country. The Ministry of New and Renewable Energy (MNRE), Government of India, along with all the State Nodal Agencies (SNAs) have already taken appropriate policy initiatives for achieving the target of 175 GW of renewable energy by 2022-23, with solar capacity of 100 GW. India communicated its Intended Nationally Determined Contributions (INDCs) to the United Nations Framework Convention on Climate Change (UNFCCC) committing amongst others, mainly to reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level and to achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030.These initiatives at both international and national level have proved to be a major motivation for energy security and reduced dependence on conventional sources of fuel. It can be a step towards meeting the INDCs, thereby contributing towards the global effort to meet the challenges of climate change. Pursuant to the enactment of the Electricity Act 2003, the SERCs are required to fix a minimum percentage of the total consumption of electricity in the area of a distribution licensee for purchase of energy from renewable energy sources. With the amendment of Tariff Policy in January, 2016, the State Electricity Regulatory Commissions (SERCs) are required to reserve a minimum percentage for purchase of solar energy which shall be such that it reaches 8% of total consumption of energy, excluding Hydro Power, by March 2022 or as notified by the Central Government from time to time. The Government of India in July, 2018 notified the Long Term growth trajectory of Renewable Purchase Obligations (RPOs) for Solar as well as Non-solar, uniformly for all States/ Union Territories, reaching 21% of RPO by 2022 with 10.5% for solar based electricity.

RPO know how

What is RPO ? 

Under Section 86(1) (e) of the Electricity Act 2003 

("EA 2003") and the National Tariff Policy 2006, Renewable purchase obligation (RPO), is a mechanism by which the obligated entities are obliged to purchase certain percentage of electricity from renewable energy sources, as a percentage of the total consumption of electricity. RPOs are categorized as solar and non solar RPO. With the objective to achieve the target of 175 GW of renewable energy by FY’2022-23, including solar energy capacity of 100 GW, Ministry of Power (MoP) have notified the target RPO trajectory up to year FY’2022-23. The RPO targets specified for solar and non-solar power are to be adhered and met uniformly by the Obligated Entities of all the States and Union Territories. Obligated Entities (which includes Discoms, Open Access Consumers and Captive power producers) are obligated to purchase a minimum share of their electricity from renewable energy sources as per RPO targets.

renewable_01.png
“On 8th March 2019, the GoI had issued an order detailing various policy measures to promote hydropower sector in India by declaring large hydropower projects including pumped storage projects having capacity of more than 25 MW which come into commercial operation after March’2019 as renewable energy sources and to specify hydropower purchase obligation (HPO) with non-solar  RPO. In compliance of the above decision and with the objective to add 30,000 MW of hydro power capacity by the year 2029-30, Ministry of Power – India prepared a revised long-term trajectory  for HPO considering the LHPs commissioned after  8th March 2019”

RPO know how


RPO Objectives


To establish a centralized monitoring mechanism for RPO compliance through a web-based portal for all states and Union territories

  • To enlist obligated entities and assess their RPO compliance
  • To ease-out the process of monitoring the RE transactions of obligated entities
  • To develop database which would become a tool for SERCs to audit RPO compliance
  • To enhance transparency in RPO compliance process
  • Create user interfaces for obligated entities to provide data on RE purchase
  • Create user interfaces for monitoring agencies to cross-verify the data provided by obligated entities
  • Prepare database for the system and analytics modules to analyse the effectiveness of the RPO regulations in the states
  • 2.2 Current status of RPO in India

    renewable_03.png

    2.3  RPO trajectory for solar, non solar & hydro

    renewable_04.png

    State wise Solar Power Installed Capacity & Look on Development of Solar Power Parks in India as of Apr’2022

    renewable_05.png

    2.4 State wise RPO trajectory track - Key states wise RPO Status

    renewable_06.png 
    renewable_07.png
    For detailed view on the RPO Status of others states  please download the full insight.

    BEST VISION IS INSIGHT

    Combine market knowledge and your skill to contribute value for end consumers

    Cover-3.jpg

    Small Format Mobility is the key to Unlock India's EVs Expansion Potential - Cost advantages making it even more preferred

    Read more  →
    Cover-2.jpg

    Disruptive dimensions of mobility in India’s new “green age” - Harnessing step change towards sustainable transportation

    Read more  →
    Cover_Image.jpg

    Is Electric Mobility in India Following a Smooth Route ? Snapshot of the Current EV Landscape

    Read more  →