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India requires new coal plants to also build or buy renewable energy

March 06, 2023

Mercom:

The Ministry of Power has announced that any coal or lignite-based thermal generation station coming up on or after April 1, 2023, must either install or procure renewable energy equivalent to 40% of the thermal generation capacity.

Also, any coal or lignite-based thermal generating station with the project’s commercial operation date between April 1, 2023, and March 31, 2025, would be required to comply with renewable generation obligation (RGO) of 40% by April 1, 2025.

Any other coal or lignite-based thermal generating plant with the commercial operation date after April 1, 2025, must comply with the RGO by the project’s commercial operation date.

However, a captive coal or lignite-based thermal generating station will be exempt from the requirement of the RGO if it fulfills the renewable purchase obligation targets.

Last November, the Ministry of Power had proposed that any coal-based thermal generation station coming up after April 1, 2024, must either install or procure renewable energy equivalent to 25% of the thermal generation capacity. 

The government is looking to operationalize a provision in the Tariff Policy, 2016, which says that the renewable energy produced by each generator could be cold after bundling it with thermal energy.

[Rakesh Ranjan]

More: Coal-Based Thermal Plants Must have 40% of Generation Capacity from Renewables

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