Power ministry to mandate renewable power generation obligation
POWER & RENEWABLE ENERGY

Power ministry to mandate renewable power generation obligation

The Power Ministry plans to make it mandatory for any thermal power producer planning to install a new generating capacity after April 1, 2024, to either set up or acquire renewable energy capacity equivalent to it. This will increase the country's capacity for renewable energy.

It intends to introduce an amendment to the Tariff Policy 2016 to incorporate the "renewable generation obligation (RGO)" provision in order to put this into practise.

In a draught note that was released on November 7 and distributed to stakeholders, it requested feedback on the plan within 21 days of that date.

The Power Ministry has recommended that as part of it, each new generating firm planning to put up a coal or thermal-based capacity after April 1, 2024, would also be required to create or acquire a comparable amount of renewable energy.

“In order to promote renewable energy sources, any generating company proposing to establish a coal or lignite-based thermal generation station after a specified date shall be required to establish such renewable energy equivalent to such capacity, as may be prescribed by the Central government from time to time after due consultation with stakeholders,” the statement read.

The capacity of renewable energy that must be established, acquired, or provided by new thermal generating stations based on coal or lignite must be at least 25% of the capacity of thermal generating stations being established, it was further added.

The project aims to reach the goal of producing 50% of electricity from non-fossil fuels.

See also:
ReNew Power to invest Rs.300 bn on scaling
Government identifies 10 states for green hydrogen manufacturing


The Power Ministry plans to make it mandatory for any thermal power producer planning to install a new generating capacity after April 1, 2024, to either set up or acquire renewable energy capacity equivalent to it. This will increase the country's capacity for renewable energy. It intends to introduce an amendment to the Tariff Policy 2016 to incorporate the renewable generation obligation (RGO) provision in order to put this into practise. In a draught note that was released on November 7 and distributed to stakeholders, it requested feedback on the plan within 21 days of that date. The Power Ministry has recommended that as part of it, each new generating firm planning to put up a coal or thermal-based capacity after April 1, 2024, would also be required to create or acquire a comparable amount of renewable energy. “In order to promote renewable energy sources, any generating company proposing to establish a coal or lignite-based thermal generation station after a specified date shall be required to establish such renewable energy equivalent to such capacity, as may be prescribed by the Central government from time to time after due consultation with stakeholders,” the statement read. The capacity of renewable energy that must be established, acquired, or provided by new thermal generating stations based on coal or lignite must be at least 25% of the capacity of thermal generating stations being established, it was further added. The project aims to reach the goal of producing 50% of electricity from non-fossil fuels. See also: ReNew Power to invest Rs.300 bn on scalingGovernment identifies 10 states for green hydrogen manufacturing

Related Stories

Gold Stories

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 86574 75330

Join us Telegram

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back