The Ministry of Power (MoP) has finalised mandatory renewable energy obligations that are to be executed by the upcoming thermal power plants as part of government’s plan of achieving net-zero carbon emissions by 2070.
The MoP has announced that any coal or lignite thermal power plant coming up on or after 1 April, 2023 must either install or procure renewable energy equivalent to 40% of the installed capacity.
In this regard, the thermal plants having scheduled commercial operation date (COD) falling between 1 April, 2023 and 31 March, 2025, would be required to comply with the renewable generation obligation (RGO) of 40% by 1 April, 2025.
Those plants having COD after 1 April, 2025 must comply with the RGO of 40% by the scheduled COD.
It is to be noted that these directives are applicable for power utilities that are engaged in commercial sale of power. However, a captive power plant has been exempted from the requirement of the RGO if it fulfills the renewable purchase obligation as notified by the government.
Sluggish pace of capacity addition
At the end of January 2023, the installed capacity of coal-based power plants stood 204,435.5 megawatts (MW) accounting for almost 50% of total power generation capacity in India.
In the ongoing fiscal (FY23), the first unit having capacity of 660 MW under NTPC’s North Karanpura plant has been the only coal-fired power station to be commissioned so far. On the other hand, a few old and inefficient power units were retired in this period.
In view of the numerous constraints that have delayed progress of several ongoing projects, the MoP has already scaled down its target of capacity addition for thermal power plants to 6,350 MW as of January, which was earlier 7,010 MW at the beginning of current fiscal.
At the same time, anticipated trial run for commissioning of pending projects has also been extended.
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