Lok Sabha Question No. 5283 (UNSTARRED), answered on 2025-04-02
Subject: Renewable Energy purchase by DISCOMs
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Dushyant Singh

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 5283

ANSWERED ON 02/04/2025

## RENEWABLE ENERGY PURCHASE BY DISCOMS

## 5283. SHRI DUSHYANT SINGH

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a)  the  details  of  the  renewable  energy  purchased  by  Power  Distribution  Companies (DISCOMs)  during  the  last  five  years  including  the  total  volume  of  Renewable  Energy Certificates (RECs) bought, cost trends and compliance with Renewable Purchase Obligations (RPOs); and
- (b)  the  manner  in  which  the  removal  of  floor  and  forbearance  prices  for  RECs  impacted DISCOMs purchasing behaviour and the measures being taken to ensure 100 per cent RPO compliance across all States?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER (SHRI SHRIPAD YESSO NAIK)

- (a) The Ministry of Power on 29.1.2021 entrusted the responsibility of maintaining data related to compliance of RPO to the Grid Controller of India (GCI), formerly known as POSOCO. Accordingly, GCI has started maintaining the RPO compliance data w.e.f. 2021-22. As per information received from GCI the renewable energy purchased by DISCOMs during 2021-22 to 2023-24 with RPO compliance achieved, RECs purchased and price range of RECs is given at Annexure-I.
- (b) Floor and forbearance prices for RECs were removed from 05.12.2022. Thereafter there is substantial  increase  in  the  quantum  of  RECs  purchased  by  DISCOMs.  While  the  RECs purchased by DISCOMs were around 60 lakh during 2022-23, it increased to 1.06 crore in 2023-24 and over 2.22 crore in 2024-25 (till 26.3.2025)

The Government has taken several measures to promote renewable energy and ensure RPO compliance across all states as listed at Annexure-II.

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## Information provided by GCI for DISCOMs

| Description                                   | 2021-22   | 2022-23   | 2023-24     |
|-----------------------------------------------|-----------|-----------|-------------|
| Renewable Energy procured including RECs (MU) | 183003.3  | 356899.0  | 345991.8    |
| RPO compliance achieved.                      | 69.22%    | 96.47%    | 79.55%      |
| RECs purchased (Nos.)                         | 21,51,442 | 59,78,307 | 1,06,57,767 |
| REC Price Range (INR)                         | 1000-2400 | 1000-2300 | 270-1000    |

## Annexure-II referred to Part (b) of Lok Sabha Admitted Unstarred Question No. 5283 for reply on 02/04/2025.

Measures taken by the Government to promote renewable energy and ensure RPO compliance across all states. These inter-alia, include the following:

- Issued Bidding Trajectory for issuance of RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies from FY 2023-24 to FY 2027-28.
- Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
- Inter State Transmission System (ISTS) charges have been waived for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032.
- To  boost  RE  consumption,  Renewable  Purchase  Obligation  (RPO)  followed  by  Renewable  Consumption Obligation  (RCO)  trajectory  has  been  notified  till  2029-30.  The  RCO  which  is  applicable  to  all  designated consumers under the Energy Conservation Act 2001 will attract penalties on non-compliance. RCO also includes specified quantum of consumption from Decentralized Renewable Energy sources.
- Project Development Cell for attracting and facilitating investments has been set up.
- Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE  (FDRE) projects have been issued.
- Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar Power Scheme (for Tribal  and  PVTG  Habitations/Villages)  under  Pradhan  Mantri  Janjati  Adivasi  Nyaya  Maha  Abhiyan  (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Bioenergy Programme, National Green Hydrogen Mission, Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched.
- Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being implemented to provide land and transmission to RE developers for installation of RE projects at large scale.
- Laying of new transmission lines and creating new sub-station capacity has been funded under the Green Energy Corridor Scheme for evacuation of renewable power.
- Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to five hundred Kilowatt or up to the electrical sanctioned load, whichever is lower.
- 'National Repowering and Life Extension Policy for Wind Power Projects, 2023' has been issued.
- 'Strategy for Establishments of Offshore Wind Energy Projects' has been issued indicating a bidding trajectory of 37 GW by 2030 and various business models for project development.
- The Offshore Wind Energy Lease Rules, 2023 have been notified vide Ministry of External Affairs notification dated 19th December 2023, to regulate the grant of lease of offshore areas for development of offshore wind energy projects.
- Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected Solar Inverters have been launched.
- To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared till 2030.
- 'The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been notified.
- Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, has been notified on 06 th June 2022 with objective of ensuring access to affordable, reliable, and sustainable green energy for all. Green Energy Open Access is allowed to any consumer with contract demand of 100 kW or above through single or  multiple  single  connection  aggregating  Hundred  kW  or  more  located  in  same  electricity  division  of  a distribution licensee.
- Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Energy Power through exchanges.
- Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
- The  Guidelines  for Resource  Adequacy  Planning  Framework has been  issued  for  enabling  the states  to  plan capacities in advance to meet the growing demand including RPO obligation.