MoP Clarifies Renewable Generation Obligation Rules for New Thermal Power Plants

The Ministry of Power has issued a clarification on the Renewable Generation Obligation (RGO) rules for coal and lignite-based thermal power plants, stating that renewable energy (RE) generated or procured by wholly owned subsidiaries will count towards compliance.

As per the February 27, 2023 resolution, any generating company establishing a coal or lignite-based thermal plant with a Commercial Operation Date (COD) on or after April 1, 2023, must either install renewable energy capacity equivalent to at least 40 percent  of the plant’s capacity or procure and supply an equivalent amount of RE.

For plants with COD between April 1, 2023, and March 31, 2025, the RGO target is lower, but for those commissioned after April 1, 2025, the full 40 percent requirement applies from the start.

Responding to industry queries, the ministry clarified that RE output from a wholly owned subsidiary of the generating company, or of any company in a joint venture, will be counted towards the parent or JV’s RGO compliance. The ministry also noted that establishing RE capacity or procuring equivalent RE, as per the notification, remains voluntary.