The Ministry of Power of India has introduced a renewable purchase obligation (RPO) that includes a mandatory share of solar power in the total electricity supplied by state electricity distribution companies.
According to the Ministry's guidelines, distribution companies will have to draw at least 2.75% of their total electricity consumption from solar power plants in the current fiscal year ending on 31 March 2017. The share of solar power in electricity supply will be raised to 4.75% in 2017-2018 and to 6.75% in 2018-2019. Non-solar renewable targets have also been introduced, at 8.75% in 2016-2017, 9.5% in 2017-2018 and 10.25% in 2018-2019. Overall, the mandatory share of renewable electricity in distributed volumes will reach 11.5% in 2016-2017, 14.25% in 2017-2018 and 17% in 2018-2109.
Final targets will be set by each individual state's electricity regulatory commission (SERC). Some SERCs have already set solar RPOs, varying between 0.25% and 1%, which were rarely met and without any penal action. Many power distribution companies are cash-strapped and prefer purchasing less intermittent coal-fired power.
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