The Ministry of Energy has issued a draft notification on the renewable technology obligation (RGO), mandating an RGO within the vary of 6 per cent to 10 per cent. The notification will supersede the sooner gazette notification of February 27, 2023. The earlier notification, in pursuance of Clause 6.4 (5) of the Tariff Coverage, 2016 notified beneath Part 3 (3) of the Electrical energy Act, 2003, had mandated an RGO of 40 per cent.
The draft notification states that coal and lignite-based producing stations can successfully scale back fossil gas consumption by supplying electrical energy from non-fossil gas sources. The draft proposes that the central authorities, in session with the Bureau of Power Effectivity (BEE), will specify the minimal share of renewable power that designated shoppers with established coal/lignite-based producing stations should obtain to cut back fossil gas consumption.
As per the draft notification, the evaluation methodology states {that a} designated client, similar to a coal/lignite-based producing station, should increase its standard technology with a minimal provide of renewable power to fulfil its RGO. It has been proposed that such a chosen client can both set up the required renewable power producing capability or procure and provide renewable power. Additionally, they’d have the freedom to provide renewable power on business rules, whatever the present PPA for the coal/lignite-based producing station. The draft stipulates {that a} captive coal/lignite-based producing station could be exempted from the requirement of RGO compliance, topic to its fulfilment of the renewable power consumption obligation. Moreover, any producing firm with multiple coal/lignite-based producing station could be allowed to adjust to the RGO on an combination foundation.
The draft additionally features a provision that any obligation fulfilled by a chosen client beneath the “Scheme for flexibility in Technology and Scheduling of Thermal/Hydro Energy Stations via bundling with Renewable Power and Storage Energy” (renewable power bundling scheme) notified on April 12, 2022, as amended every so often, could be thought-about part of the RGO fulfilment.
In line with the draft, the RGO shall be assessed by way of the annual share of renewable power technology, expressed as a proportion of the entire annual technology, which incorporates each standard and renewable power technology, by the respective designated shoppers with established coal/lignite-based producing stations. Concerning monitoring and verification, the draft states that each designated consumer with a longtime coal/lignite-based producing station should submit a report, in digital type, to the involved designated agency with a replica to BEE, giving the standing of electrical energy technology, together with renewable power generated or procured, for the financial yr ending on March 31, on or before June 30 of the next monetary yr.
The shortfall within the RGO goal by way of TOE (tonnes of oil equal) is proposed to be computed as follows:
Shortfall (TOE) = (T – A) × TG) × 86
The place T (%) stands for the goal proportion for renewable power, A (%) represents the achieved share of renewable power, and TG (MUs) is the entire electrical energy generated from the coal/lignite-based thermal producing station(s) and renewable power producing station(s), together with renewable power procured and equipped, in MUs.
Any designated client with a longtime coal/lignite-based producing station failing to adjust to the stipulated RGO obligatory proportion goal, as per the notification, shall be subjected to penalty beneath Part 26 (3) of the Power Conservation Act, 2001, as amended every so often.
To conclude, the lowered RGO proposed within the present draft as in opposition to the earlier notification of February 2023 comes in opposition to the backdrop of an unprecedented energy demand surge within the nation. Coal-fired energy vegetation play a big position in powering the nation throughout non-solar hours when renewable power just isn’t obtainable. Evening-time or non-solar energy demand can also be clocking new highs. Within the absence of power storage, coal-fired vegetation assist in assembly electrical energy demand. Subsequently, despite the nation’s aggressive renewable power targets and sustainability targets, the discount in RGO is a practical transfer to supply a transition period for renewable power to catch up. Within the interim, the increasing energy demand might be met thtough the thermal energy vegetation that the nation has traditionally relied upon.
