Ministry of Power Sets Solar RPO for FY 2019-20 at 7.25 Percent

The Ministry for Power, Government of India, has set solar renewable purchase obligation (RPO) for financial year (FY) 2019-2020 at 7.25 percent. The non-solar RPO for FY 2019-2020 has been set at 10.25 percent.

Long-Term RPO Trajectory

There has also been an increase in the percentage of solar RPO for the next financial year, compared to the current fiscal. The solar RPO for current fiscal is 6.75 percent, this will go up by 0.50 percent next year. But the non-solar RPO has remained constant at 10.25 percent.

The solar RPO for FY 2020-2021 is 8.75 percent and non-solar RPO is 10.25 percent. This increases to solar RPO of 10.50 percent in FY 2021-2022 and non-solar RPO of 10.50 percent in FY 2021-2022.

When contacted, an official at the Ministry of New and Renewable Energy (MNRE) said, “We have achieved more than half the target for wind, but in solar we are way behind the target, hence there is gradual increase in specified solar RPOs for the coming years leading to 2022.”

The Ministry of Power in its order has stated that on achievement of solar RPO compliance of 85 percent and above, the remaining shortfall can be met by purchasing non-solar energy beyond the specified non-solar RPO for that year.

The ministry also specified, “In case non-solar RPO compliance of 85 percent and above has been achieved, then the remaining shortfall can be met by purchasing solar energy beyond the specified solar RPO for that year.”

Mercom previously reported that 16 states and union territories achieved less than 60 percent of their respective RPOs in 2016-17.