Confusion over new Renewable Purchase Obligations
The Ministry of Power (MoP) had recently declared the national RPO trajectory. The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. For non-solar, the targets ranges from 8.75 % to 10.25 % and for solar from 2.75% to 6.75%. The target is to reach 17% of total energy consumption.
These RPO targets have led to confusion amongst the state owned power distribution companies and thus the Union government is likely to revise the renewable purchase obligation (RPO) targets. Following were some of the issues raised:
- The industry executives have said that no order was officially released by any government department.
- Few states have asked MoP for provisions in the RPO target as the targets are stringent and mandatory.
- Some north-eastern & northern states, which are either hydro-rich or with low solar radiation have opposed RPO targets for solar being
- These states want solar RPO to be removed for them and let it be resource flexible.
The officials of MNRE and MoP have said that they are likely to revisit the target as it was under wide consultation for the states. Since few states cannot meet the solar targets, the targets will be set in line with the regulations and commitments regarding climate change.
The above update has been taken from Business Standard’s article published on 22nd August, 2016 which can be accessed here.
Our previous blog on National RPO Trajectory declared by MoP can be accessed here.