In a move that will boost clean energy in the country, the Cabinet on Thursday amended the Power Tariff Policy which now requires the State Electricity Regulators (SERC) to fix a percentage of energy purchase from solar power under the Renewable Purchase Obligation (RPO). The solar power purchase obligation for states may start with 0.25% in Phase I (by 2013) and go up to 3% by 2022.
RPOs are implemented throughout the country for compulsory use of minimum quantity of renewable energy and are mandated by SERC under the Electricity Act, to purchase a minimum level of renewable energy out of the total consumption in the area of a distribution licensee.
The amendment is as per the proposal of the National Solar Mission strategy that intends to create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022 besides ramping up capacity of grid-connected solar power generation to 1,000 MW by 2013.
This will be complemented by solar specific Renewable Energy Certificate (REC) mechanism to allow solar power generation companies to sell certificates to the utilities to meet their solar power purchase obligations.
REC is a market based instrument which enables the obligated entities to meet their RPO and the value of REC is equivalent to 1 MWh of electricity injected into the grid from renewable energy sources.
In another decision, the Cabinet Committee on Economic Affairs (CCEA) approved a budgetary support of Rs 70.41 crore for 10 sick and loss-making Central Public Sector Enterprises for payment of employees? statutory dues like gratuity,provident fund,insurance and bonus. These enterprises include Hindustan Cables, Triveni Structurals, Scooters India and HMT Bearings, among others.
CCEA also approved the proposal to enhance the allocation for the special plan for Bihar from the current level of Rs 1,000 crore to Rs 2,000 crore in 2010-11 and to the extent of Rs 1,468 crore in 2011-12, based on the enhanced level of cost of Rs 8,753 crore of all the projects.