States to satisfy 25% of their vitality wants from renewable vitality sources

States would wish to satisfy 1 / 4 of their vitality demand from renewable vitality (RE) sources beneath the brand new ‘Renewable Buy Obligation (RPO)’ mandate and improve it to 43 per cent by finish of this decade. The brand new set of targets embrace photo voltaic, wind, hydro and likewise vitality storage for the primary time for states to mandatorily buy.

The stringent targets come within the wake of India committing an formidable 500 gigawatt (GW) of RE by 2030 on the Glasgow COP26 local weather summit final 12 months. Additionally, the draft Electrical energy Invoice 2021, prone to be positioned within the Parliament throughout this monsoon session, has additionally proposed penal provisions for states which fail to satisfy their RPO targets.

Beneath the present set of targets for 2023-2030, complete RPO vary is 24.61 to 43.33 per cent. On this, the wind RPO is within the vary of 0.81-6.94 per cent, hydro RPO, launched two years again, 0.35-2.82 per cent and different RPO, which can majorly comprise of solar energy, the vary is 23.44-33.57 per cent.

For vitality storage, which has been launched for the primary time, the targets are within the vary of 1-4 per cent throughout this decade. This is able to be met via photo voltaic and wind energy tasks with vitality storage.

States would now must design and supply a trajectory for assembly the RPO targets within the vary stipulated by the Centre. The states that are deficit in RE technology should purchase RE certificates from surplus states or via energy buying and selling platforms. The value of RECs is issued by the Central Electrical energy Regulatory Fee (CERC) yearly.

Over the last three years, the RPO targets had been 17 per cent, 19 per cent and 21 per cent. Barring 5 states which over-achieved their targets, not one of the states met their RPO until 2020, in keeping with a Lok Sabha report on the identical. The states which meet their RPO targets 12 months on 12 months are those that are useful resource wealthy comparable to Gujarat, Karnataka, Rajasthan, Andhra Pradesh and Tamil Nadu.

For states which must buy RE for assembly their targets, the achievement has been dismal. For the reason that RPO mechanism was launched in 2010, apart from RE wealthy states, none have met 100 per cent of their goal throughout any 12 months. This has led to a rising mismatch within the RE sector with states reluctant to buy RE whereas photo voltaic and wind energy undertaking capability will increase yearly. The Centre is now trying to strictly implement RE buy.

The proposed amendments to the Electrical energy Act, 2003 have for the first-time drafted penalty provision for states which miss on their RPO trajectory. For states which buy RE lower than their prescribed trajectory, the Union Ministry of Energy has proposed a penalty sum within the vary of 25 paisa per unit (kwh) to 30 paisa per unit for the primary 12 months of default. For the next years, the penalty fee can be 35-50 paisa per unit.

India has a goal of assembly 175 GW of RE by the tip of this 12 months with photo voltaic contributing 100 GW, 60 GW via wind and steadiness from different sources comparable to small hydro. At the moment, India’s RE capability stands at 114 GW with photo voltaic at 57 GW and wind at 40 GW.


Wind RPO


Different RPO

Complete RPO









































All figures in %

HPO= Hydropower buy obligation

Different RPO consists of solar energy, waste to vitality, biomass and many others.

Supply: ministry of energy

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