The Ministry of Power has mandated new coal or lignite-based thermal plants to either set up renewable energy capacity equivalent to at least 40 per cent of the thermal plant’s capacity or procure that much supply of green energy under renewable purchase obligation.
Earlier this month the power ministry amended the Tariff Policy 2016 under Electricity Act 2003 to impose the renewable purchase obligation of 40 per cent for the new coal or lignite-based thermal power plants to be set up from April 1, 2023 onwards, showed a notification.
“… any generating company establishing a coal/lignite-based thermal generating station and having the Commercial Operation Date (COD) of the project on or after April 1, 2023 shall be required to establish renewable energy generating capacity (in MW) i.e.
