Lok Sabha Question No. 3010 (UNSTARRED), answered on 2025-03-19
Subject: Incentive for States meeting Renewable Energy Purchase Obligations Target
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Sribharat Mathukumilli

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 3010

ANSWERED ON 19/03/2025

## INCENTIVE FOR STATES MEETING RENEWABLE ENERGY PURCHASE OBLIGATIONS TARGET

## 3010. SHRI SRIBHARAT MATHUKUMILLI

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

- (a) whether the Government has formulated a policy to reward and incentivize States that meet or exceed their Renewable Purchase Obligation (RPOs) targets and if so, the details of specific financial or regulatory incentives being considered to encourage greater compliance;
- (b) whether the Government is planning to introduce incentives or policy interventions to ensure smoother approvals, lower regulatory charges and greater ease of access for commercial and industrial consumers through open access projects by the State Governments and if so, the details thereof;
- (c) the measures being taken to support State electricity regulators, DISCOMs and policymakers in building the necessary technical expertise and institutional capacity to effectively integrate and manage renewable energy within State grids; and (d) the manner in which the Government is assisting States in deploying grid-scale energy storage, improving forecasting mechanisms and enhancing grid flexibility to ensure a stable and reliable renewable energy supply considering that intermittency remains a key concern for States dependent on fossil fuels?

## ANSWER

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

- (a) Any shortfall in meeting renewable purchase obligation as determined by the concerned State  Commission,  or  notified  by  Central  Government  under  Energy  Conservation  Act, whichever is higher, may attract penalty under Electricity Act, 2003 or Energy Conservation Act, 2001, as the case may be. However, as per Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022, provides that an obligated entity being a distribution licensee or an open access consumer, which purchases electricity from renewable energy sources in excess of the renewable purchase obligation as determined by the concerned State Commission, or notified by Central Govt. under Energy Conservation Act, whichever is higher, will be eligible for issuance of Renewable Energy Certificates to the extent of purchase of such excess electricity from renewable energy sources. The Certificates so issued can be traded on Power Exchanges or bilaterally.
- (b)  The  Government  on  6th  June  2022  notified  Electricity  (Promoting  Renewable  Energy Through Green Energy Open Access) Rules, 2022 and thereafter issued amendments thereof. The key features of these Rules that ensure smoother approvals, lower regulatory charges and greater ease of access for commercial and industrial consumers through open access projects by the State Governments, inter-alia include the following:
1. Open Access is allowed to any consumer with contract demand of 100 kW or above through single or multiple single connection aggregating 100 kW or more located in same electricity division of a distribution licensee and for captive consumers there is no such minimum limit,
2. Consumers  are  entitled  to  demand  supply  of  green  power  from  DISCOMs  and DISCOMs are obliged to supply the demand.
3. Approval for open access is to be granted in 15 days or else it will be deemed to have been granted.
4. Commercial  and  Industrial  consumers  are  allowed  to  purchase  green  power  on  a voluntary basis.
5. Green Certificates are awarded to consumers for consumption of green power beyond the renewable purchase obligation.
6. Additional surcharge shall not be applicable for Green  Energy  Open  Access Consumers, if fixed charges are being paid by such a consumer.
7. Cross subsidy surcharge and additional surcharge shall not be applicable if green energy is utilized for production of green hydrogen and green ammonia.

So far Green Energy Open Access Regulations have been issued by 30 States/UTs.

- (c) To support State electricity regulators, DISCOMs and policymakers including for building the necessary technical expertise and institutional capacity to effectively integrate and manage renewable  energy  within  State  grids,  the  Ministry  of  Power  and  Ministry  of  New  and Renewable Energy and various institutions under these Ministries are organising webinars/ workshops/conferences/training programmes/ study tours from time to time.
- (d)  For  assisting  States  in  deploying  grid-scale  energy  storage,  improving  forecasting mechanisms and enhancing grid flexibility to ensure a stable and reliable renewable energy supply, Government has taken various measures, which inter alia include the following:
- a. Publishing  a  National  Framework  for  promoting  &  developing  Energy  Storage Systems.
- b. Providing waiver on ISTS charges for a period of 12 years for Battery Energy Storage System and 25 years for Pumped Hydro Storage System from the date of the award of the construction work.
- c. Providing Viability Gap Funding for development of approximately 13 GWh of BESS
- d. Thirteen Renewable Energy Management Centres (REMCs) have been set-up for better forecasting and real time monitoring of RE generation.
- e. Load dispatch centres ensure that electricity demand is fully met using dispatchable sources such as hydro and thermal power when the wind does not blow and sun does not shine.
- f. Installation  of  Static  Synchronous  Compensators  (STATCOMs)  to  improve  the  grid reliability and voltage stability limit. A STATCOM acts as a voltage controller for the electricity grid, quickly adding or removing extra power to keep the system running smoothly.
- g. Central  Electricity  Authority  (Technical  Standards  for  Connectivity  to  the  Grid) Regulations lay down the minimum technical requirements for RE generating plants to ensure the safe, secure and reliable operation of the grid.
- h. Mandating minimum prescribed flexibility in coal and lignite power plants.

*****