New Delhi: The Ministry of Power has notified the applicability of Renewable Generation Obligation (RGO) to firms constructing coal-based thermal power stations from April 2023 onwards.
Under this, the companies will have to set up renewable energy projects of 40 per cent capacity of such coal-fired power stations.
RGO was introduced in 2016 as an enabling provision in the National Tariff Policy.
“It has been decided that any generating company establishing of coal or lignite-based thermal generating station and having the Commercial Operation Date (COD) of the project on or after 1 April 2023 will be required to establish RGO of a minimum of 40 per cent of the capacity of a coal power plant or procure and supply RE equivalent to such capacity,” noted the official document on 27 February 2023.
It added that a coal or lignite-based thermal generating station with COD between 1 April 2023 and 31 March 2025 will have to comply with RGO of 40 per cent by 1 April 2025, and projects with commissioning date after 1 April 2025 will have to comply by the COD.
By way of RGO, India has introduced a ‘supply side’ push to promote RE as it imposes obligations on generators of electricity, said Prateek Bhandari, counsel – energy, infrastructure and resources, Khaitan & Co, in his recent Linkedin post.
“On the other hand, India has had ‘demand side’ obligations from nearly two decades in the form of Renewable Purchase Obligation which requires specific consumers or distributors of electricity to purchase a certain percentage of their power requirements from RE projects,” he said in his post.