Govt plans to reduce renewable generation obligation for new power plants from 40% to 6-10%

14 Oct 2023

In a major reversal of its previous order, the central government has now proposed to impose a renewable generation obligation (RGO) of 6–10% on new coal and lignite power plants instead of 40%, as was notified in March. Section 14 of the Energy Conservation Act, 2001, allows the Centre to order power-generating companies to produce or purchase a minimum specified quantity of power from renewable energy sources. Such mandates are called RGOs. In the latest draft notification issued by the power ministry on October 6, the government has proposed to keep the RGO mandate at 6% if coal/lignite-based power plants are commissioned on or before March 31, 2023, even if RGO compliance is due. The date starts on April 1, 2026.