Burden Of Relief

The Union government’s decision to exempt captive power plants from meeting renewable energy targets will upset India’s climate change mitigation plan

- Kundan Pandey

AS INDIA hopes to meet the target of 175 gigawatts (GW) renewable energy installation capacity by 2022, as part of its climate change mitigation plan, a misguided step may upset the apple cart at this critical juncture. On February 1 this year, a Union government order exempted captive power plants (CPPS) from sharing the equal burden of the country’s green energy target. These plants—which generate and supply power for specific projects—will not have to bear extra charges for renewable energy purchase obligations (RPOs). Higher RPOs are maNDAtory only in case of additional capacity addition in the future.

The move has elicited a mixed response. While Indian Captive Power Producers’ Association Secretary, Rajiv Agrawal, has appreciated the Centre’s order for bringing about market certainty, lobbies in favor of open-access consumers and state power distribution companies (discoms) pointed out that the National Democratic Alliance (NDA) government has succumbed to industry pressure. Chandra Bhushan, deputy director general at Delhi-based non-profit, Centre for Science and Environment, said that after the government decided to set a cap for CPPS, ailing discoms and states would have to increase their RPOs to reach the 2022 target of 175 GW. RPOs are basically targeted to ensure the strict implementation of renewables in India’s total energy mix. Of the 175 GW, 100 GW is solar power. The rest include 60 GW wind, 10 GW biomass, and 5 GW small hydro-power projects.