In an article in the Economic Times, the importance of RPOs has been highlighted by saying that RPOs are the most important instruments towards achieving the lofty goal of installing 175 GW of renewable energy by 2022. Last year, the Ministry of Power had declared the National RPO Trajectory but not much was complied with. As per the CEO of Mercam Capital Group, a number of issues need to be addressed in order to make sure that RPOs are complied with such as evacuation issues, DISCOM financials, etc. The government needs to provide a conducive environment for renewable installations to thrive. In some cases, it has so happened that the state electricity regulatory commissions have allowed a carry forward of the shortfall of DISCOMS which one of the reasons for non-compliance.

On the other hand, it can also be said that a number of changes are being made from the government’s side as well to make sure that RPOs are complied with. A new policy has been introduced in which it is estimated that solar RPO will be 8% by 2022. Also, it also mandates the DISCOMS to procure 100% power from waste to energy projects. The World Bank as well as some other banks are providing financial support so as to increase the number of renewable energy installation in India.

In the last trading session, a huge gap was seen in the number of solar and non-solar RECs traded. Now, with the reduction in floor and forbearance prices of RECs by Central Electricity Regulatory Commission, compliance towards RPOs may get further delayed.


As per the article in DNA India, the New and Renewable Energy Minister, Piyush Goyal, declared that India has crossed 10,000 MW of solar energy on the 12th of this month and has increased more than three times in the last three years. This milestone coincided with the commissioning of 45 MW solar power project in Rajasthan by National Thermal Power Corporation (NTPC).

This is in concurrence with the proposed goal that India has of installing 100 GW of solar capacity 2022 and its renewable energy capacity to 175 GW.

MNRE Notifies Guidelines for Development of Solar Parks

The Ministry of New and Renewable Energy (MNRE) has recently notified the guidelines for the development of solar parks in the country. Previously in December 2014, the ministry had finalized scheme for the development of Solar Parks, targeting a capacity of 20 GW through this scheme.

The scheme rolled out by MNRE last year plans to set up 25 solar parks, each with a capacity of 500 MW and above; thereby targeting around 20000 MW of solar power installed capacity. These solar parks will be set up within in a span of 5 years commencing from 2014-15.

So far Lands has been identified in Gujarat, Madhya Pradesh, Rajasthan, Telangana, Andhra Pradesh, Arunachal Pradesh, Karnataka, Kerala, Uttar Pradesh, Meghalaya, Nagaland, Punjab, Tamil Nadu, Andaman & Nicobar Islands and Uttarakhand.

Status and Achievement of Solar Park: Some states has shown keen interest in setting up large projects under the scheme, and the Ministry received consent from the States for setting up of Solar Parks. The graph blow shows the state-wise projected capacities that can be developed on the identified lands.

Under the scheme the MNRE will provide a grant of RS. 20 lakh/MW or 30% of the project cost, whichever is lower. Solar Energy Corporation of India (SECI) will be the implementing agencies for development of solar parks.

The main objective of the development of these large solar projects is to bring down the cost of solar power, and is one of the major components of the government’s plans of developing 100 GW solar Energy by 2021-22.

In depth details of the MNRE guidelines can be read here.

Our previous blog post on The MNRE Scheme for Solar Parks can be read here.

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