Central Government prescribes mandatory renewable energy generating capacity for coal/lignite based thermal generation stations


In order to promote renewable energy sources, any generating company proposing to establish a coal/lignite based thermal generation station after a specified date shall be required to establish such renewable energy generating capacity or procure and supply renewable energy equivalent to such capacity, as may be prescribed by the Central Government from time to time after due consultation with stakeholders.

The Ministry of Power has proposed the renewable energy generation requirement through draft amendment to the Tariff Policy 2016 issued on 07.11.2022. As per the draft policy, the renewable energy produced by each generator may be bundled with its thermal generation for the purpose of sale. In case an obligated entity procures this renewable power, then the SERCs will consider the obligated entity to have met the Renewable Purchase Obligation (RPO) to the extent of power bought from such renewable energy generation stations.

All the stakeholders of the power sector are requested to provide their comments within 21 days from the date of issuance of this letter, on the above proposal through email at rcmdivision-mop@gov.in.

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