Ministry proposes cut in Renewable Generation Obligation for coal plant
POWER & RENEWABLE ENERGY

Ministry proposes cut in Renewable Generation Obligation for coal plant

In a notable departure from the norm, the Ministry of Power has unveiled a draft notification outlining its intention to significantly reduce the renewable generation obligation (RGO) for upcoming coal and lignite-based power plants.

According to the latest draft notification issued on October 6, the proposed mandate aims to decrease the current obligation of 40% to a range of 6-10%, contingent upon the commissioning date of the respective plants.

This amendment, in harmony with the Energy Conservation Act of 2001, seeks to curb fossil fuel consumption in the nation. According to the draft, power plants commencing operations by March 31, 2023, must adhere to a 6% RGO. Those commissioned between April 1, 2023, and March 31, 2025, will be subject to a 10% mandate. Obligations for plants operational after April 1, 2025, will be determined based on their commercial operation dates.

The document underscores the pivotal role of coal and lignite stations in diminishing reliance on fossil fuels by integrating electricity from renewable sources. The revised RGO percentages are positioned as a strategic move to encourage a higher proportion of electricity derived from non-fossil fuel sources.

Emphasising flexibility, the draft stipulates that designated power producers can opt to establish renewable energy generation facilities or procure the necessary renewable energy. Moreover, companies with multiple coal or lignite plants can consolidate their RGO requirements.

The Ministry has also cautioned about penalties for non-compliance, although the specific penalty structures are still under discussion. This draft notification is anticipated to supersede the previous one dated February 27, 2023, concerning renewable generation obligation.

In a notable departure from the norm, the Ministry of Power has unveiled a draft notification outlining its intention to significantly reduce the renewable generation obligation (RGO) for upcoming coal and lignite-based power plants. According to the latest draft notification issued on October 6, the proposed mandate aims to decrease the current obligation of 40% to a range of 6-10%, contingent upon the commissioning date of the respective plants. This amendment, in harmony with the Energy Conservation Act of 2001, seeks to curb fossil fuel consumption in the nation. According to the draft, power plants commencing operations by March 31, 2023, must adhere to a 6% RGO. Those commissioned between April 1, 2023, and March 31, 2025, will be subject to a 10% mandate. Obligations for plants operational after April 1, 2025, will be determined based on their commercial operation dates. The document underscores the pivotal role of coal and lignite stations in diminishing reliance on fossil fuels by integrating electricity from renewable sources. The revised RGO percentages are positioned as a strategic move to encourage a higher proportion of electricity derived from non-fossil fuel sources. Emphasising flexibility, the draft stipulates that designated power producers can opt to establish renewable energy generation facilities or procure the necessary renewable energy. Moreover, companies with multiple coal or lignite plants can consolidate their RGO requirements. The Ministry has also cautioned about penalties for non-compliance, although the specific penalty structures are still under discussion. This draft notification is anticipated to supersede the previous one dated February 27, 2023, concerning renewable generation obligation.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code