State utilities to be fined for flouting renewable purchase obligations

The power ministry may impose stricter penalties on state utilities that refuse to comply with RPO (renewable power purchase obligations).

The Centre aims to set up 1.75 lakh MW of renewable energy capacity by 2030, to meet its international obligations and to address the nation’s energy security. But, many of the utilities have been flouting renewable power purchase obligations, as a result, the demand for solar and wind power, is sub optimal for growth. At present, solar power purchase obligation averages out to 1.25% of the total power bought by all utilities.

This is targeted to touch 3% by 2022, requiring a total installed capacity of 34,152 MW.

The Centre may consider blocking funds to errant states from schemes such as the Deen Dayal Upadhyay Gram Jyoti Yojana for rural electrification and Power System Development Fund.