The Ministry of Power in India has announced a new mandate that requires new coal and lignite-based thermal power plants to have a minimum 40% renewable purchase obligation (RPO). The move is aimed at promoting the use of renewable energy sources and reducing the carbon footprint of the power sector.
The RPO is a mandate that requires power distribution companies and other large consumers of electricity to purchase a certain percentage of their power from renewable energy sources. The new mandate for coal and lignite-based thermal plants will come into effect from April 1, 2022.
The power ministry has also stated that any thermal power plant that fails to meet its renewable purchase obligation will have to pay a penalty, which will be equivalent to the cost of the shortfall in the RPO. The penalty will be deposited into a separate fund that will be used to promote the development of renewable energy sources.
The move is expected to promote the use of renewable energy sources and reduce the dependence on fossil fuels in the power sector. India has set a target of achieving 450 GW of renewable energy capacity by 2030, which includes 280 GW of solar power and 140 GW of wind power.
The power ministry has stated that the new mandate will encourage the development of renewable energy projects and help India achieve its renewable energy targets. It will also help to reduce the country’s carbon footprint and contribute to global efforts to mitigate the effects of climate change.
The move towards renewable energy sources has been a key focus for the Indian government, which has implemented several policies and initiatives to promote the use of clean energy. The new mandate for coal and lignite-based thermal plants is expected to accelerate the transition towards renewable energy sources in the country.