Solar RPO requirement by 2022

The following table illustrates the solar RPO requirement by 2022 on the basis of expected demand in India. National Action Plan on Climate Change (NAPC) , suggests RPO at 5% in year 2010, increasing 1% every year for 10 years.By 2021-22,  it is  envisaged that the solar RPO may rise by 3 %.


Whether the state or central both are striving hard to make India a solar hub with new schemes being offered,and various incentives initiated.The government has introduced Jawaharlal Nehru National Solar Mission as one of  the forefront policy aiming at the development of  renewable industry in India.RPO’s have always played  an integral role in the growth of the solar industry in India. Different states have their own soar policy based on which  target is set and the allocated  process is  planned out.

Renewable Purchase Obligations (RPOs) are the minimum amount of solar energy that obligated entities – distribution licensees, open access and captive consumers – have to deliver or consume as a percentage of their total available electricity. They can meet this obligation by purchasing the required quantity of solar power directly from producers. Alternatively, they can buy solar Renewable Energy Certificates (RECs) to fulfill RPOs. If the required obligation is not met by the states,a penalty is levied. RPO targets define how much electricity in the country is estimated to be produced from renewable energy sources. The RPO policy, devised under the National Action Plan on Climate Change (NAPCC), targeted to produce 5% green electricity in 2009, 7% in 2012 and 15% by 2020.

Key Points :

  • To achieve 3% RPO compliance by 2022, we would need ~34,000MW of solar capacity
  • To be able to achieve such capacity additions, states have come up with Renewable Purchase Obligations ,with yearly targets

Source: MNRE


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