The Ministry of Power (MoP) has notified that in exercise of powers conferred under section 3(3) of the Electricity Act, 2003, the central government notified the revised ‘Tariff Policy vide Resolution No. 23/2/2005-R&R (Vol-IX)’ published in the Gazette of India (Extraordinary) (Part1 – Section 1) on January 28, 2016. In pursuance of clause 6.4 (5) of the Tariff Policy 2016, it has been decided that any generating company establishing a coal or lignite-based thermal generating station and having the commercial operation date (COD) of the project on or after April 1, 2023 shall be required to establish renewable energy generating capacity (in MW) i.e. renewable generation obligation (RGO) of a minimum of 40 per cent of the capacity of a coal or lignite-based thermal generating station or procure and supply renewable energy equivalent to such capacity.
A coal or lignite based thermal generating station with COD of the project between April 1, 2023, and March 31, 2025, shall be required to comply with RGO of 40 per cent by April 1, 2025, and any other coal or lignite based thermal generating station with COD of the project after April 1, 2025 shall be required to comply with RGO of 40 per cent by the COD. Further, a captive coal/lignite based thermal generating station shall be exempted from requirement of RGO subject to its fulfilling Renewable Purchase Obligations as notified by the central government.
In January 2023, MoP issued the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment Rules, 2023. It includes measures for the banking settlement cycle, new charges, and exemptions for offshore wind projects from additional surcharges. It will enable consumers to purchase green energy based on their consumption. These changes are intended to align existing rules with newly approved regulations and provide consumer flexibility to promote renewable energy open access. The amendments went into effect from January 27, 2023.
