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Renewable Generation Obligation

New Delhi: The Power Ministry is going to approach the cabinet with new draft proposed to stringent the rules for renewable purchase obligation. The move is being considered as the result of slow market driver for REC which again is reflecting in slow diffusion of different RE technologies. For cabinet’s consideration one more proposal of Renewable Energy Obligation is being proposed by Power Ministry wherein the thermal power producers could be obligated for generating certain power from renewable energy technology. However the percentage of obligation is not revealed but it is certain that in near future the conventional power generator might have to invest in RE technologies. It is expected that under RGO the seller as well as captive user would be having obligation to generate from renewable energy technologies.

Harish Sharma-EnvironmentFirst Energy Services (P) Ltd.