Lok Sabha Question No. 1782 (UNSTARRED), answered on 2024-12-05
Subject: Purchase of Renewable Energy
Ministry: POWER
Asked by: Smt. Dhanorkar Pratibha Suresh

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1782 ANSWERED ON 05.12.2024

## PURCHASE OF RENEWABLE ENERGY

†1782. SMT. DHANORKAR PRATIBHA SURESH:

Will the Minister of POWER be pleased to state:

- (a) whether the Government has made it mandatory for power distribution companies to  purchase other renewable energy as per their power demand and if so, the details thereof;
- (b) whether the Government has made any amendment in the Tariff Policy, 2006;
- (c) if so, the details thereof; and
- (d) whether the Government has formulated any regulatory mechanism to ensure the purchase  of  renewable  energy  by  the  distribution  companies  of  State  Electricity Boards?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

- (a) : Ministry  of  Power  vide  gazette  notification  dated  20.10.2023  under  Energy Conservation Act, 2001  has mandated  the  minimum  share  of  non-fossil energy consumption for designated consumers. Distribution licensees and all other designated consumers  who  are  open  access  consumers  or  captive  users  to  the  extent  of consumption  of  electricity  from  sources  other  than  distribution  licensee  have  been mandated  for  utilizing  a  minimum  percentage  of  energy  consumption  from  different types  of  non-fossil  sources  as  a  percentage  of  their  total  share  of  electrical  energy consumption, during the year 2024-25 to 2029-30, as per details given below:

|   Sl. No | Year          | Wind renewable energy   | Hydro renewable energy   | Distributed Renewable Energy*   | Other renewable energy   | Total Renewable energy   |
|----------|---------------|-------------------------|--------------------------|---------------------------------|--------------------------|--------------------------|
|        1 | 2024-25 0.67% | 0.38%                   | 1.50%                    | 27.35%                          | 29.91%                   |                          |
|        2 | 2025-26 1.45% | 1.22%                   | 2.10%                    | 28.24%                          |                          | 33.01%                   |
|        3 | 2026-27 1.97% |                         | 1.34%                    | 2.70%                           | 29.94%                   | 35.95%                   |
|        4 | 2027-28 2.45% |                         | 1.42%                    | 3.30%                           | 31.64%                   | 38.81%                   |
|        5 | 2028-29       | 2.95%                   | 1.42%                    | 3.90%                           | 33.10%                   | 41.36%                   |
|        6 | 2029-30       | 3.48%                   | 1.33%                    | 4.50%                           | 34.02%                   | 43.33%                   |

.........2.

* For hilly and North-Eastern States/Union Territories, namely Arunachal Pradesh, Assam, Manipur,  Meghalaya,  Mizoram,  Nagaland,  Sikkim,  Tripura,  Jammu  &  Kashmir,  Ladakh, Himachal Pradesh and Uttarakhand, the distributed renewable energy component shall be half  of  that  given  in  the  Table  and  the  remaining  component  for  these  States  shall  be included in the other renewable energy sources.

(b) & (c) : Ministry of Power has made amendments to the Tariff Policy, 2006 on 31st March  2008  for  aligning  it  with  the  Hydro  Power  Policy,  2008.  Further,  Amendments dated 20 th  January 2011 and 8 th  July 2011 have been issued in the Tariff policy, 2006 for fixing  minimum  percentage  of  solar  energy  in  the  total  consumption  and  granting exemption  to  hydro  projects  and  certain  transmission  projects  from  Tariff  Based Competitive Bidding respectively.

Subsequently,  Revised  National  Tariff  Policy  was  issued  on  28th  January  2016, which  inter-alia  includes  a  provision  mandating  a  long-term  growth  trajectory  for Renewable  Purchase  Obligations  (RPOs)  by  Ministry  of  Power  in  consultation  with Ministry of New and Renewable Energy.

(d) : Ministry  of  Power  vide  gazette  notification  dated  20.10.2023  has  designated Bureau  of  Energy  Efficiency  (BEE)  to  monitor  the  compliance  of  renewable  energy utilization by the designated consumer(s). In case of shortfall in the renewable energy consumption targets, penalty may be imposed as per provisions under sub-section (3) of section 26 of the Energy Conservation Act, 2001, for which adjudication is to be carried out by a Member of the concerned State Commission.

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