Par panel favours strict RPO mechanism

A Parliamentary panel today pitched for invoking penal provisions against entities failing to meet their renewable purchase obligations imposed by law.
Observing that power utilities were not following Renewable Purchase Obligations (RPO), the Parliamentary Standing Committee on Energy said the mechanism lacked teeth and should be backed by penal provisions.
The Committee, chaired by SP chief Mulayam Singh Yadav, said the government should ensure mandatory use of atleast 10 per cent of the energy from renewable sources out of the total energy requirements of the utilities.
Examining the Demands for Grants of the Ministry of New and Renewable Energy, the panel lauded the efforts of the government to involve other ministries in promoting green energy.

"Nonetheless, the Committee are of the view that this should be done through a legal and statutory mechanism making it compulsory to use certain percentage of this energy failing which it should be followed by penal provisions," it said.
The RPO refers to the obligation imposed by law on some entities -- mostly power distribution companies and bulk consumers -- to either buy electricity generated by specified 'green' sources, or buy, in lieu of that, 'renewable energy certificates (RECs)' from the market.
The Committee, however, said the RPOs were not being followed by power utilities.
The panel said it was of the view that "in addition to the existing provisioning policy, Act and CERC guidelines, action should be taken to formalise them into statute with policy and legal framework.