RENEWCONNECT - All about renewables & power sector

 Renewable Purchase Obligation (RPO) requirements in India mandate that electricity entities (such as DISCOMs, open access consumers, and captive power producers) procure a certain percentage of their energy from renewable sources. RPO requirements are specific to different segments within the electricity supply chain—generation, transmission, and distribution. Here’s how these obligations typically apply across these segments: 1. Generation Segment : Renewable Energy Generation Targets : The generation segment is indirectly impacted by RPOs because they create a demand for renewable energy. This obligation requires generation companies to either directly produce or facilitate the production of renewable energy to meet the RPO demand from DISCOMs and other obligated entities. Solar and Non-Solar RPO : Power producers who operate coal-fired or non-renewable power plants often partner with renewable energy producers or set up their own renewable installations to meet RPO compliance. ...

 A Power Purchase Agreement (PPA) is a legally binding contract between a power producer (such as a solar, wind, or thermal energy plant) and a buyer (usually a power distribution company or bulk electricity consumer). The contract specifies terms such as the duration of the agreement, price per unit of power, scheduling, penalties for non-compliance, and mechanisms for dispute resolution. In India, PPAs are governed by both national regulations and state-specific policies, primarily to foster investments in renewable energy and ensure a stable energy supply. Key Elements of a Power Purchase Agreement in India Contractual Duration : PPAs in India typically have a tenure ranging from 10 to 25 years for renewable energy sources, providing long-term stability for both the generator and the buyer. Tariff Structure : Tariffs can be fixed (determined at the start of the contract) or variable (based on market conditions or linked to factors like inflation or fuel cost index). Competitive ...