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.

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?