Coal-fired power plants have been significant
in powering the country during non-solar hours when renewable energy is not
available in the absence of energy storage systems
The
government has also proposed to allow generating companies operating multiple
coal or lignite-based power plants to meet RGO targets on an aggregate basis.
Representational picture
In a major reversal of
its previous order, the Union government has now proposed to impose a Renewable
Generation Obligation (RGO) of 6-10 percent on new coal and lignite power
plants, instead of 40 percent as was notified in March.
Section 14 of the Energy
Conservation Act, 2001, allows the centre to mandate electricity generating
companies to produce or procure a minimum specified quantity of power from
renewable energy sources. Such a mandate is called an RGO.
In the latest draft notification,
issued by the Ministry of Power on October 6, the government has proposed to
keep the RGO mandate at 6 percent if the coal/lignite-based power plant was
commissioned on or before March 31, 2023, even though the due date for RGO
compliance starts from April 1, 2026. Plants which has a commercial
operation date between April 1, 2023, and March 31, 2025, will have an RPO
mandate of 10 percent, the due date for which will be April 1, 2025. Plants
scheduled for commissioning from April 1, 2025, onwards will also have a
mandate of 10 percent, which will have to start from the day of commercial
operations.
Power generating stations will have to submit
electronic reports detailing their electricity generation, including renewable
energy production or procurement for each financial year to the power ministry.
In case of non-compliance, penalties will be imposed as per the Energy
Conservation Act 2001, which is likely to be around Rs 10 lakh for each
instance of non-compliance with additional daily penalties for continued
violations.