News Renewable Energy

renewable energy: Small renewable energy projects get renewed push

Small renewable energy projects installed by consumers are set to get a boost as the government has modified the proposed growth trajectory of renewable energy purchase obligations for distribution companies and open access consumers, and made it more stringent.

While the overall renewable purchase obligation (RPO) trajectory from FY25 to FY30 remains the same as last notified in 2022, the segment mix has changed.

A new segment called ‘distributed renewable energy’ has been introduced.

Renewable energy projects with capacity of less than 10 megawatt (MW) installed by consumers under any arrangement – net metering, gross metering, virtual net metering, group net metering, behind the meter installations and any other configuration – will qualify for renewable purchase obligation from the distributed renewable energy segment. What gives the RPO trajectory more boost is that this time the obligations have been issued under the Energy Conservation Act, therefore, non-compliance will attract hefty penalties and the state regulators may not have a role to play in them.

As per the official notification, the Bureau of Energy Efficiency (BEE), under the power ministry, will maintain data related to compliance of renewable energy utilisation by the designated consumers and submit reports to the Centre. “There are some DRE technologies where competitiveness in terms of pricing is not there. Compelling the discoms and businesses to take this kind of renewable energy will kickstart these sectors,” said Gaurav Upadhyay, energy finance specialist (South Asia) at Institute for Energy Economics and Financial Analysis (IEEFA).

He said it is “a very good push to start the sectors that were left behind”.Purchase obligation for new wind energy projects stands at 0.67% of total energy used for FY25. For FY30, it is at 3.48%.

Source link