Govt fixes RPO target at 24.61 per cent for FY23

Rishi Ranjan Kala | Updated on: Jul 22, 2022

The government also fixed Energy Storage Obligation at 1% for FY24

The Power Ministry on Friday released the long-term growth trajectory of Renewable Purchase Obligation (RPO) and Energy Storage Obligation till FY30.

For FY23, the government has mandated that 24.61 per cent of the total energy consumed in a Discoms area will have to be from renewable energy (RE) sources. The RPO includes a mix of 0.81 per cent wind power, 0.35 per cent from hydro power and the remaining 23.44 per cent from other renewable sources.

Similarly, with respect to Energy Storage Oblications, which will become operational from FY24, one per cent of a Discoms’ total consumption should come from RE (solar or wind) plus storage.

By FY30, the Ministry expects Discoms will procure 43.33 per cent of their total consumption from RE sources, as well as an additional 4 per cent to meet their energy storage obligations.

The RPO targets beyond FY22 was recommended by a joint committee, headed by Power Secretary Alok Kumar and MNRE Secretary Indu Shekhar Chaturvedi. The targets were also discussed with the MNRE before being finalised.

The Power System Operation Corporation (POSOCO) will maintain the data related to compliance of RPO obligations.

State Electricity Regulatory Commissions can notify their RPO trajectory for their respective states, over and above the RPO, HPO and ESO fixed by the centre. The Central Energy Regulatory Commission (CERC) will consider devising a suitable mechanism for renewable energy certificate (REC) mechanism to facilitate fulfilment of HPOs.

Hydro power Purchase Obligation

To further promote hydro power, the government has specified that large hydro power projects), including pumped storage projects, that are commissioned after March 8, 2019 will be considered as part of RPOs through a separate obligation-- Hydro power Purchase Obligation (HPO).

“From FY23 onwards, the energy from all hydro power projects will be considered a part of RPO. The HPO trajectory, as has been notified earlier, will continue to prevail for LHPs commissioned after March 8, 2019. All other HPPs will be considered as part of RPO under the category of ‘Other RPO’,” the Power Ministry said.

The Renewable Energy Certificate (REC) mechanism corresponding to hydro power to be developed by CERC will have a cap of Rs 5.50 per unit with effect from March 8, 2019 to March 31, 2021 and with an annual escalation of 5 per cent thereafter for the purposes of ensuring HPO compliance, it added.

Energy Storage Obligation

Energy Storage Obligation will be calculated in energy terms as a percentage of total consumption of electricity and shall be treated as fulfilled only when at least 85 per cent of the total energy stored in the Energy Storage System (ESS), in a year, is procured from RE sources.

The ESO to the extent of energy stored from RE sources shall be considered as a part of fulfilment of the total RPO. The obligation will be reviewed periodically

Renewable Purchase Obligations

In July 2018, the government notified the long term growth trajectory of RPOs for solar and non-solar, uniformly for all states, reaching 21 per cent of RPO by 2022 with 10.5 per cent for solar-based electricity.

Published on July 22, 2022
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