The government is looking at increasing renewable purchase obligation (RPO) targets from 3 per cent to 10 per cent so as to meet the 1 lakh MW solar capacity by 2022.
- Under the RPO, distribution companies (discoms) are mandated to purchase a certain amount of their power from renewable sources.
- The current tariff policy mentions separate percentages of RPO for solar and non-solar sources.
- If we have to achieve the target of 1,00,000 MW of green power, we will have to increase the RPO targets to 8-10 per cent by 2022.
- Right now some states have given RPO target (solar, non-solar combine) of 5-7 per cent, so that they need to increase to 15 per cent by 2022.
- The recently announced UDAY package that aims to alleviate the discoms’ debts also includes a rule that they will now have to comply with the RPO.