The introduction of the distributed renewable energy (DRE) component in the renewable purchase obligations (RPOs) trajectory is expected to give a push to India’s target of achieving 40 GW of rooftop solar (RTS) capacity by 2026. As of Q2 FY24, RTS stood at ~11 GW. Further, the RPOs for wind and hydro are mandated to be fulfilled by the projects commissioned after March 31, 2024. This would translate into greater demand certainty for the upcoming projects.
Will this lead to further announcements of state-centric DRE policies and regulations?
Since their inception, RPOs have largely remained unmet. With the recent inclusion of the RPO trajectory under the Energy Conservation Act, 2001, will we see increased RPO compliance?