+
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
Infrastructure Transport

MMRDA Targets Completion of Projects by December 2028

The Mumbai Metropolitan Region Development Authority (MMRDA) is targeting the completion of all its ongoing infrastructure projects by December 2028, a year ahead of its December 2029 deadline, Metropolitan Commissioner Dr Sanjay Mukherjee has said.Speaking at the sixth edition of the Real Estate & Infrastructure Investors' Summit (REIIS) 2026 in Mumbai, Mukherjee said the authority was developing an integrated network of roads, tunnels, sea links and Metro corridors under its broader vision of “Mumbai in 59 Minutes”.The objective is to improve east-west and north-south connectivity an..

Next Story
Building Material

High-Performance Façades Gain Ground in Indian Buildings

High-performance façades are gaining greater importance in Indian architecture as developers and architects increasingly focus on energy efficiency, thermal comfort and building performance, according to Shankar Fenestrations & Glasses.The company said modern façade systems are increasingly being considered as part of a building's overall performance strategy rather than being used primarily as aesthetic elements.High-performance glass, curtain wall systems and structural glazing can contribute to thermal regulation, solar control, daylight management and indoor comfort. Their growing ad..

Next Story
Technology

SPML Infra's 104.4 kWh BESS Battery Pack Clears Global Tests

SPML Infra has announced that its proprietary 104.4 kWh Battery Energy Storage System (BESS) battery pack has completed key international safety, performance and transportation testing and certification requirements, marking a step towards its commercial deployment.Developed under the company's own intellectual property, the battery pack has completed requirements under UL9540A, IEC 62619, IEC 63056, IEC 60730, IEC 61000-6-2, IEC 61000-6-4 and UN38.3 standards.The testing covers areas including thermal runaway safety, battery performance, system functional safety, electromagnetic compatibility..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code