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Greenpeace urges speedy implementation of the scheme

New Delhi | June 19, 2018| The Union government’s decision to increase Renewable Purchase Obligations (RPO) of state distribution companies from 17% in 2019 to 21% by 2022 has been welcomed by Greenpeace India, while also warning that ensuring the DisComs compliance is critical. The RPO target will help India meet its 175GW renewable energy target under the Paris Agreement on Climate Change.

Pujarini Sen, Climate and Energy Campaigner, Greenpeace India, said: Most state DisComs have failed to comply with existing RPO targets and do not seem to be serious about making the shift to clean energy. According to a 2017 Greenpeace analysis, only 6 states were able to meet the RPO targets, so it’s great that the Ministry of New and Renewable Energy (MNRE) has now established an RPO Compliance Cell, though there is no clarity yet on what penalties could be imposed for non-compliance.”

In order to realistically meet the new RPOs, state and private Distribution Companies (DisComs) will need to implement new & creative renewables projects and not rely on large solar or wind farms alone. The MNRE’s recently announced KUSUM scheme (Kisan Urja Suraksha evam Utthaan Mahabhiyan) to promote solar arrays connected to irrigation pumps can play a key role in helping states fulfil their RPOs.

“The KUSUM scheme will empower farmers to generate and sell clean electricity to the grid, generating additional income for the farmer while also helping DisComs meet their RPO targets and reducing the burden on DisComs to supply subsidised electricity to the agricultural sector. It’s a win-win for farmers, DisComs and state governments”, says Sen.

As an example, Gujarat’s DisCom MGVCL could be earning upto ₹2.97 lakhs per year from just 100 kW of solar pumps via the renewable energy credits these generate; they will save another ₹6 lakhs in avoided costs by not having to supply farmers using these pumps with electricity, according to a recent study of the Dhundi pilot project in Central Gujarat. Grid-connected solar pumps have the potential to be a “remunerative crop” for both farmers and DisComs.

The Finance Minister had mentioned the grid-connected solar pump scheme in his speech during the Union Budget in February this year. Minister of Power, Mr.RK Singh had also reportedly said that the scheme will be rolled out in July, though disagreements with the Finance Ministry have also been reported.

For further details-

Anindita Datta Choudhury, senior Communications Officer, Greenpeace India;
ph: +919315608925; email: adattach@greenpeace.org
Pujarini Sen, Climate and Energy Campaigner, Greenpeace India;
ph: +91 8586016050;email: pujarini.sen@greenpeace.org