Indian Power Distribution companies to face penalties for flouting RPO

India: The Ministry of Power intends to impose penalties on power distribution companies in India for not complying to Renewable Purchase Obligation (RPO). Currently, the renewable purchase obligation from solar power projects is 1.25% which is expected to reach 3% by 2022 thereby resulting requiring 34.15GW of solar powered installed capacity by 2022. The push by government to comply with Renewable Purchase Obligation would result propel the growth of solar energy projects in the country.

TechSci Research finds out government’s decision to impose penalties on state distribution in a bid to encourage the promotion of Renewable Purchase Obligation would have a positively influenced the growth of renewable power projects in the country. India plans to add 175 GW of renewable energy projects by 2022 out of which 100GW of installed capacity would come from solar powered projects. Once the state discoms comply to RPO obligations, this would result in increased demand for power from renewable energy project thereby boosting the growth of renewable energy projects particularly the solar power projects in the country. This in turn, would encourage the demand for solar power equipment market in the nation.

According to released report of TechSci Research “India Solar Power Equipment Market Forecast & Opportunities, 2020”, the solar power equipment market in India is projected to surpass USD4 billion by 2020, wherein solar energy would be generated by employing photovoltaic (PV) and concentrated solar power (CSP) technologies across the country. Constantly improving solar equipment technologies, advanced manufacturing processes for production of hi-tech equipment and anticipated decline in equipment prices is projected to further drive the solar equipment market over the next five years.