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Thermal plants in India set for 40% renewable purchase obligation

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Earlier in March, India's power ministry amended its Tariff Policy 2016 under the Electricity Act 2003 to impose a renewable purchase obligation of 40% for new coal or lignite-based thermal power plants from 1 April onwards, according to The Telegraph India.
Such plants must therefore either implement renewable energy capacity equivalent to at least two-fifths of the thermal plant's capability, or procure the same capacity from a green energy source under a renewable purchase obligation.
“... any generating company establishing a coal/ lignite-based thermal generating station and having the Commercial Operation Date (COD) of the project on or after April 1 shall be required to establish renewable energy generating capacity (in MW) i.e. renewable generation obligation (RGO) of a minimum of 40 per cent of the capacity of the thermal generating station or procure and supply renewable energy equivalent to such capacity,” it explained.
A coal/lignite-based thermal generating station with COD of the project between 1 April and 31 March 2025 will be required to comply with an RGO of 40% by 1 April 2025.
Any other coal/lignite-based thermal generating station with COD of the project after 1 April 2025 will be required to comply with an RGO of 40%  by the Commercial Operation Date.
A captive coal/ lignite-based thermal generating station will be exempt from the requirement of RGO, subject to its fulfilling renewable purchase obligations as notified by the central government, it stated.
This assumes significance given India’s ambitious target of having 500 GW of renewable energy capacity by 2030.
India had 1,21,549.52 MW of renewable energy capacity excluding large hydro (over 25MW) as of 31 January 2023.
This includes 63,893.83 MW of solar, 41,983.18 MW of wind energy and 10,209.81 MW of biomass or co-generation power.






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