Electricity Act to to ensure stricter green power generation: Piyush Goyal

5 Dariya News

New Delhi 03-Dec-2014

To boost the wind energy sector, the government proposes to bring in amendments to the Electricity Act introducing stricter penalties for failing to meet renewable purchase obligation (RPO) targets, Minister of New and Renewable Energy (MNRE) Piyush Goyal said Wednesday.The amendments to the Electricity Act,2003, would be tabled in the ongoing winter session of parliament, he added."We're looking at presenting amendments to the Electricity Act in this session of parliament, for strengthening the penalty provisions manifold in the renewable purchase obligations, to make theses more stringent," Goyal said here launching the newly formed body of wind power producers and manufacturers called the Indian Wind Energy Allaince (IWEA).Under the RPO (Renewable Purchase Obligation) system, the state power distribution companies have to mandatorily purchase electricity generated through renewable energy sources during the year. The proposed changes, which the MNRE will place for the cabinet's consideration shortly, will also introduce the renewable generation obligation (RGO), which will make it compulsory for thermal power producers to also generate electricity through renewables, Goyal said."We will have renewable generation obligations for companies setting up new projects that will require to have a 10 percent renewable component to the installed capacity they are setting up," he added. Changes to the tariff policy are also being proposed through the amendments, the minister said.Overall, the government was aiming at 2 trillion units of electricity generation by 2020 in which renewable sources are to account for 15 percent, Goyal said. The share of renewable energy is currently around 6 percent of a total base made up of 1 trillion units of electricity.