India releases state-specific Renewable Purchase Obligation targets

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
India's RPO has not been enforced strongly to date. Credit: Yogendra

India has released state-wide targets in order to achieve its newly-revised Renewable Purchase obligations (RPOs) of 17% by 2022.

In a letter, Ministry of New and Renewable (MNRE) joint secretary Tarun Kapoor set out a long-term growth trajectory of the RPO, which includes an 8% minimum provision for solar energy.

The state-specific targets Included tentative calculations of the installed capacity requirement for each state to meet their RPOs. These calculations excluded hydro power and were based on assumptions about rooftop solar installations and growth in total energy consumption in each state.

Kapoor wrote: “As setting up of capacity takes time and solar power is now available at very competitive price, we request all the states to impress upon the distribution companies (Discoms) to procure solar power immediately in order to achieve the solar RPO well in advance each year.”

The densely populated state of Uttar Pradesh has the highest solar RPO requirement of 13,248MW by 2022.

In another letter, MNRE secretary Upendra Tripathy, requested the development of an ‘Action Plan’ in order to achieve the RPOs.

Tripathy wrote: “Operationalization of the Policy provisions would require concerted efforts, particularly gearing up electricity Discoms for higher levels of RPO.

“At present many of the states are not fulfilling RPOs.”

Until now the failure of the government to enforce the RPO has been widely criticised, with the heavily debt-laden state Discoms being reluctant to take on solar power projects. However the recent sharp drops in solar tariffs should ease this issue.

Last week speaking at an event held by the UK’s Solar Trade Association (STA), ‘British Opportunities in International Solar Markets: India Focus’,  Amit Kumar, partner at PricewaterhouseCoopers India, said that India faces major challenges in achieving it renewable obligation targets.

He said: “We are struggling just like anywhere else in the world. It is difficult to achieve, but there is a movement. This was one of the initial drivers for the renewable energy in the country.”

Similarly, last November, Kapoor described the RPO as the “single most important” policy to drive solar deployment in India.

Tripathy has proposed convening a meeting in the second week of March to discuss the ‘State Action Plan 2022’ and he listed some initial actions to help the RPO achievement including, for example, the bundling of renewable energy projects with fossil-fuel based projects.

Read Next

July 20, 2021
It is “unhealthy” for China to dominate solar manufacturing and production bases outside of the country are necessary to reduce the risk of supply chain disruptions, an Indian government official has said.
July 20, 2021
Vikram Solar has completed a new 1.3GW solar module manufacturing facility in Tamil Nadu, India, taking its total manufacturing output to 2.5GW.
July 14, 2021
India government-owned NTPC Renewable Energy has been given approval by India’s Ministry of New and Renewable Energy (MNRE) to build a 4.75GW solar project in Gujarat, India.
July 13, 2021
Solar PV capacity in Asia Pacific could triple to 1,500GW by 2030, with China driving deployment and Indonesia set to be the region’s fastest-growing market, according to Wood Mackenzie.
June 28, 2021
Module and cell manufacturers in India will expand their production capabilities by 13.75GW for modules and 6.9GW for solar cells, according to research by JMK Research and Analytics
June 25, 2021
Indian conglomerate Reliance Industries will construct an integrated PV module factory and look to enable more than 100GW of solar by 2030 as part of a US$10.1 billion clean energy plan.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
July 29, 2021
Webinar
Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021