New mandate for states on renewable energy

The central government has issued a new trajectory for state governments under the Renewable Purchase Obligation (RPO) to meet power demand through renewable energy. According to these guidelines, states have been directed to meet a quarter of their power demand from renewable energy sources in 2022. RPO has set a target to increase it gradually from 24.6% in FY23 to 47.33% in FY30.

Previously, RPO targets were earmarked at 17.5% in FY ’20, 19% in FY ’21, and 21% in FY ’22, but the actual achievement has been below par. Now state regulatory commissions would need to set targets for energy distribution companies under this trajectory.

Separate trajectories have been set to achieve the target. For instance, the target for wind power will increase from 0.81% to 6.94% in FY30, and for hydro power, it will be increased from 0.35% in the current fiscal to 2.82% during the period.