“Under this agreement states will be required to purchase a fixed per cent of their needs from renewable energy plants. They cannot get away by installing renewable capacity and not using it,” a senior government official said.
The percent committed under the RPO will also increase gradually every year and states will have to increase the portion of their power purchase from renewable energy generating units, as per the agreement. The states will have to come up with their own targets.
This act will prove as a catalyst for renewable energy infrastructure in the country and capacity will have to be doubled from the existing 14,000 megawatt (MW) to about 28,000 MW to make it effective.
India has a renewable energy mix of only 3% at present. INR700 billion will have to be spent to create the additional capacity of 14,000 MW.
The Ministry of New and Renewable Energy has also recommended a mechanism to facilitate inter-state exchange of renewable energy. The forum of regulators has also put together a group to ensure the implementation of the RPOs.
“By next year, a format will also be prepared for providing renewable energy certificates to states. This is expected to be in place by April 1, 2010. The modalities of the certification are being currently worked out with the states,” the official said.
It has also been decided that wind, solar, small hydro-power will be categorized as non-firm sources as scheduling of power from such sources was not possible due to their very nature of availability under the current technology. The states will have to keep this factor in mind while sourcing their power needs.
