+
40 per cent Renewable Generation Obligation (RGO) mandatory
POWER & RENEWABLE ENERGY

40 per cent Renewable Generation Obligation (RGO) mandatory

The Renewable Generation Obligation (RGO) will be applicable to businesses building coal-based thermal power stations beginning in April 2023, according to a notification from the Ministry of Power.

Companies will be required to construct renewable energy projects with 40% capacity to replace these coal-fired power plants under this.

RGO was added to the National Tariff Policy in 2016 as an enabling provision.

On February 27, 2023, the official document stated, "It has been decided that any generating company establishing a 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."

In addition, a coal or lignite-based thermal generating station with a COD between 1 April 2023 and 31 March 2025 must comply with a 40 per cent RGO by 1 April 2025, and projects with a commissioning date after 1 April 2025 must comply by COD.

According to Prateek Bhandari, Counsel - Energy, Infrastructure, and Resources, Khaitan & Co., in a recent Linkedin post, India has introduced a "supply side" push through RGO to promote RE as it imposes obligations on generators of electricity.

He stated in his post, "On the other hand, India has had 'demand side' obligations in the form of Renewable Purchase Obligation for nearly two decades. These obligations require specific consumers or distributors of electricity to purchase a certain percentage of their power requirements from RE projects."

The Renewable Generation Obligation (RGO) will be applicable to businesses building coal-based thermal power stations beginning in April 2023, according to a notification from the Ministry of Power. Companies will be required to construct renewable energy projects with 40% capacity to replace these coal-fired power plants under this. RGO was added to the National Tariff Policy in 2016 as an enabling provision. On February 27, 2023, the official document stated, It has been decided that any generating company establishing a 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. In addition, a coal or lignite-based thermal generating station with a COD between 1 April 2023 and 31 March 2025 must comply with a 40 per cent RGO by 1 April 2025, and projects with a commissioning date after 1 April 2025 must comply by COD. According to Prateek Bhandari, Counsel - Energy, Infrastructure, and Resources, Khaitan & Co., in a recent Linkedin post, India has introduced a supply side push through RGO to promote RE as it imposes obligations on generators of electricity. He stated in his post, On the other hand, India has had 'demand side' obligations in the form of Renewable Purchase Obligation for nearly two decades. These obligations require specific consumers or distributors of electricity to purchase a certain percentage of their power requirements from RE projects.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code