17 States yet to meet RPO norms

Seventeen States are yet to meet the renewable purchase obligations (RPO) norms, according to rating agency ICRA. RPO is the minimum stipulated percentage of the total power that electricity distribution companies and large power consumers need to purchase from renewable energy sources.

Minimum target

In 2008, the National Action Plan for Climate Change specified a minimum RPO target of five per cent in 2009-10, to be increased one per cent every year for 10 years to reach 15 per cent by 2019-20. The long-term trajectory for RPO up to FY-2017 is in place only in 11 out of the 28 States. The State Electricity Regulatory Commissions (SERCs) in 20 States have stipulated the RPO norms for FY-2015. In the remaining eight states, SERCs in Meghalaya and Uttar Pradesh have made provisions for continuation of the prevailing RPO for subsequent years till new norms are approved by them, a report from the rating agency said.

Distribution utilities in Himachal Pradesh, Karnataka and Tamil Nadu have fully met the RPO norms as specified by their regulators for FY-2013, while the compliance of discoms in some States such as Gujarat, Maharashtra and Rajasthan are in the range of 90-95 per cent, said Girish Kadam, Vice-President, Corporate Sector Ratings.

Source: Business Line