Renewable Purchase Obligation (RPO)

  • What is it? DISCOMs required to purchase certain percentage of electricity from various renewable energy sources.
  • Framework for RPOs? Laid down under Electricity Act, 2003 and National Tariff Policy 2016
  • Types of RPOs: Solar RPO and Non-Solar RPO. Government has declared that procurement of power from large Hydropower Projects (more than 25 MW) and Ocean Energy would be considered as Non-Solar RPO.
  • Who lays down the Targets for RPOs? Annual Targets laid down by State Electricity Regulatory Commissions (SERCs). Long term targets laid down by Ministry of Power.
  • Present Targets: Long Term target to be met by 2022. Total RPO: 21% (Solar RPO: 10.5% + Non-Solar RPO: 10.5%)
  • Renewable Energy Certificates (RECs): DISCOMs that exceed their RPO obligations can sell RECs to other DISCOMs that fail to meet RPO target. 1 REC is equal to 1 Mwh.