Indian Government Implements Renewable Generation Obligation for Thermal Power Plants


The Indian government has issued a revised Tariff Policy under the Electricity Act, 2003. As per the policy, any company that establishes a coal or lignite-based thermal generating station and begins commercial operations on or after 1st April 2023, must establish renewable energy generating capacity equal to a minimum of 40% of the thermal station’s capacity or procure and supply equivalent renewable energy.


For thermal generating stations with commercial operation dates between 1st April 2023 and 31st March 2025, compliance with the renewable generation obligation (RGO) of 40% must be achieved by 1st April 2025. For any other thermal generating stations starting commercial operations after 1st April 2025, compliance with RGO of 40% is mandatory from the start of commercial operations.


Captive coal or lignite-based thermal generating stations will be exempt from the RGO requirement, provided they meet the Renewable Purchase Obligations set by the Central Government.


View the official document here:


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