New Delhi: To enhance renewable energy capacity in the country, the Power Ministry aims to make it compulsory for any thermal power producer aiming to set up a new generating capacity after April 1, 2024, to either set up or procure renewable energy capacity equivalent to it.
To implement this, it plans to bring out an amendment in the Tariff Policy 2016 to include the provision of “renewable generation obligation (RGO)”.
It has sought stakeholders’ comments on the proposal which has been shared with them through a draft note issued on November 7, within 21 days of its issuance.
Under it, the Power Ministry has proposed that after April 1, 2024 any new generating company planning to set up a coal or thermal-based capacity would have to build or procure a similar quantum of renewable energy.
“In order to promote renewable energy sources, any generating company proposing to establish a coal or 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 note read.
It further added that the capacity of renewable energy to be established or procured or supplied by new coal or lignite based thermal generating stations, has to be minimum 25 per cent of the capacity of thermal generating stations being established.
The initiative is aimed at achieving the target of generating 50 per cent of electricity from non-fossil fuels.
