40 per cent Renewable Generation Obligation (RGO) mandatory
POWER & RENEWABLE ENERGY

40 per cent Renewable Generation Obligation (RGO) mandatory

The Renewable Generation Obligation (RGO) will be applicable to businesses building coal-based thermal power stations beginning in April 2023, according to a notification from the Ministry of Power.

Companies will be required to construct renewable energy projects with 40% capacity to replace these coal-fired power plants under this.

RGO was added to the National Tariff Policy in 2016 as an enabling provision.

On February 27, 2023, the official document stated, "It has been decided that any generating company establishing a coal or lignite-based thermal generating station and having the Commercial Operation Date (COD) of the project on or after 1 April 2023 will be required to establish RGO of a minimum of 40 per cent of the capacity of a coal power plant or procure and supply RE equivalent to such capacity."

In addition, a coal or lignite-based thermal generating station with a COD between 1 April 2023 and 31 March 2025 must comply with a 40 per cent RGO by 1 April 2025, and projects with a commissioning date after 1 April 2025 must comply by COD.

According to Prateek Bhandari, Counsel - Energy, Infrastructure, and Resources, Khaitan & Co., in a recent Linkedin post, India has introduced a "supply side" push through RGO to promote RE as it imposes obligations on generators of electricity.

He stated in his post, "On the other hand, India has had 'demand side' obligations in the form of Renewable Purchase Obligation for nearly two decades. These obligations require specific consumers or distributors of electricity to purchase a certain percentage of their power requirements from RE projects."

The Renewable Generation Obligation (RGO) will be applicable to businesses building coal-based thermal power stations beginning in April 2023, according to a notification from the Ministry of Power. Companies will be required to construct renewable energy projects with 40% capacity to replace these coal-fired power plants under this. RGO was added to the National Tariff Policy in 2016 as an enabling provision. On February 27, 2023, the official document stated, It has been decided that any generating company establishing a coal or lignite-based thermal generating station and having the Commercial Operation Date (COD) of the project on or after 1 April 2023 will be required to establish RGO of a minimum of 40 per cent of the capacity of a coal power plant or procure and supply RE equivalent to such capacity. In addition, a coal or lignite-based thermal generating station with a COD between 1 April 2023 and 31 March 2025 must comply with a 40 per cent RGO by 1 April 2025, and projects with a commissioning date after 1 April 2025 must comply by COD. According to Prateek Bhandari, Counsel - Energy, Infrastructure, and Resources, Khaitan & Co., in a recent Linkedin post, India has introduced a supply side push through RGO to promote RE as it imposes obligations on generators of electricity. He stated in his post, On the other hand, India has had 'demand side' obligations in the form of Renewable Purchase Obligation for nearly two decades. These obligations require specific consumers or distributors of electricity to purchase a certain percentage of their power requirements from RE projects.

Next Story
Infrastructure Urban

Greater Noida to Build 750-Acre Smart Industrial Township

Aiming to provide enhanced safety, an efficient traffic management system and seamless delivery of essential services through advanced technology, a new integrated industrial township covering nearly 750 acres will be developed near the Noida International Airport. Officials stated that smart city-like features will be implemented, with all civic services operated through a centralised digital system. “A modern Command and Control Centre will be established to monitor and manage key services such as electricity, water, waste, traffic and security. Around 140 high-definition CCTV and Automat..

Next Story
Infrastructure Urban

State to Fund 2 New Stations on Pune Metro’s Swargate-Katraj Line

The Pune Metro project has received a major boost, as the state government has committed to funding the additional cost of Rs 6.83 bn for two newly proposed stations—Bibwewadi and Balaji Nagar—on the Purple Line’s Swargate to Katraj extension. This 5.464-kilometre underground corridor is part of Pune Metro’s ongoing expansion efforts. The proposal for the two stations was originally put forward in January 2025 by Maharashtra’s Urban Affairs Minister, Madhuri Misal. The inclusion of Bibwewadi and Balaji Nagar stations aims to alleviate persistent traffic bottlenecks in the city, offe..

Next Story
Infrastructure Urban

Otis India Wins Elevator Contract for Patna Metro Infrastructure

Otis India has been awarded a major contract to supply, install, and maintain 65 Gen2 Nova elevators for the Patna Metro project—marking a significant stride in Bihar’s infrastructure development and urban mobility transformation. The elevators, to be manufactured at Otis' Bengaluru facility, are equipped with features that enhance accessibility for individuals with reduced mobility. This aligns with the Patna Metro’s emphasis on creating a modern and inclusive public transport system. The Patna Metro, the first of its kind in Bihar, comprises two lines and 26 stations stretching acros..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?