, India

These 25 Indian states failed to meet solar renewable purchase obligation targets

Over 2,034MW of solar power is needed by these states to fulfill RPOs.

Twenty-five states in India have fallen behind their renewable purchase obligation (RPO) targets, according to Mercom Capital.

The state-wise installation targets set by the Ministry of New and Renewable Energy (MNRE) have not been met; only 2,250 MW of solar was installed through December 31, 2016, compared to the targeted 12,000 MW for financial year (FY) 2016-17.

States are now being requested by MNRE to ensure RPO compliance including through purchase of renewable energy certificates (RECs).

Here’s more from Mercom Capital:

An MNRE state-by-state progress report on renewable energy for FY 2015-16 shows that Meghalaya, Karnataka, Nagaland, Himachal Pradesh, Andhra Pradesh, Tamil Nadu, Maharashtra, Rajasthan, Gujarat, Haryana, Madhya Pradesh, Chhattisgarh, Punjab, and the Union Territory (UT) of Andaman and Nicobar achieved above 60 percent RPO compliance. The remaining states and union territories achieved less than 60 percent RPO compliance.

Considering the actual RPO level specified by the State electricity regulatory commissions (SERCs) for the year 2016-17, it is estimated that for FY 2016-17 over 2,034 MW of solar is needed by the remaining 25 states and union territories to fulfill the solar RPO, stated an MNRE report.

Since the RPO targets are yet to be met, all states should align their policies with MNRE targets and in accordance with regulations issued by regulatory commissions like the Central Electricity Authority (CEA) and Central Electricity Regulatory Commission (CERC), stated an MNRE official. The delay in solar parks is one of the reasons, and MNRE is trying its best to fast-track development of solar parks and related infrastructure, added the MNRE official.

“Mostly the reason for non-compliance is financial,” commented Raj Prabhu, CEO of Mercom Capital Group. “The financial health of DISCOMs have been a primary hurdle for India in scaling its power generation and especially more expensive renewable sources like solar. Most of the states have joined UDAY (Ujwal DISCOM Assurance Yojana, a financial turnaround program that targets DISCOM debt reduction) to fix these issues. Financial health of DISCOMs need to turn around sooner rather than later for more robust renewable installations which would in turn increase the RPO compliance” said Raj Prabhu.


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