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Power play: Will states accept the draft Electricity Bill 2025?
Mint Hyderabad
|October 15, 2025
The draft Electricity (Amendment) Bill 2025, released by the power ministry, could deliver a boost to renewable energy (RE) and distribution companies (discoms).
A crucial proposal is the requirement that state discoms meet renewable purchase obligations (RPOs) fixed by the Union government and pay a penalty in case of shortfall. RPOs account for 30% of total power procured, and this could rise to 43% by FY30.
The bill also empowers the Central Electricity Regulatory Commission to introduce market-based instruments to enhance trade in RE. This would help discoms meet their needs from the market without having to enter into binding, long-term power purchase agreements.
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