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News Brief | February 2011

Power tariff policy stipulates 3% solar power use by 2022

The Government has amended the Power Tariff Policy stipulating the States' solar power purchase obligation to go up to three per cent by 2022. A decision, taken by the union cabinet, prescribes solar power purchase obligation for states may start with 0.25 per cent in Phase I (by 2013) and go up to three per cent by 2022. This will be complemented by solar specific Renewable Energy Certificate (REC) mechanism to allow solar power generation companies to sell certificates to the utilities to meet their solar power purchase obligations. The ministry of power had proposed amendment to the Tariff Policy, 2006 to ensure that the State Electricity Regulators could fix a percentage of energy purchase from solar power under the renewable purchase obligation.
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