RPO Obligation
India is growing rapidly in becoming world leader in Renewable Energy Sector. Currently it is ranked 3rd in installed renewable energy capacity. To incentivize demand and supply of renewable energy sector, regulatory support has been crucial in rapid growth. Renewable power obligation is mandated by EA (2003) to support the growth which require obligate entities to purchase minimum percentage of electricity through Renewable Energy resources.
Quantum of Renewable power produced are not same in different parts of country, this creates difficulty in procuring power from RE sources for the obligated entities. Renewable energy certificates (RECs) plays significant part in overcoming these issues.
RECs are ‘green tradeable certificates’ that represent the environmental attributes of power generated from RE but not the actual power itself.4 RECs allow the obligated entities to meet their RPO without actual procurement of RE-generated power.5 They can be purchased on the national energy exchanges such as Indian Energy Exchange (IEX) and Power Exchange of India Limited (PXIL) by the obligated entities to meet their RPO targets.
At EnerTsol We believe in green and sustainable future and helps companies in achieving Renewable power obligation and green targets.
Scenarios to Achieve RPOs
