Power Ministry Issues Renewable Generation Obligation for Thermal Plants

With an aim to boost renewable energy generation capacity in India, the power ministry has announced that thermal generation stations which would begin commercial operations from April 2023 onwards will have to either install or procure renewable energy equal to a minimum of 40 percent of its capacity. 

As per the revised Tariff Policy issued by the government under the Electricity Act, 2003, coal or lignite-based thermal generating station with commercial operation beginning between 1 April 2023 and 31 March 2025, needs to achieve 40 percent compliance with the renewable generation obligation (RGO) by 1 April 2025.

Meanwhile, the companies that would begin commercial operations after 1 April 2025, shall be required to comply with an RGO of 40 percent by the commercial operation date.

However, if the companies meet the renewable purchase obligations set by the central government, they would be exempted from the RGO requirement.