Ministry of Power Clarifies Renewable Generation Obligation (RGO) Compliance
The Ministry of Power has issued a clarification regarding the Renewable Generation Obligation (RGO), which mandates that new coal/ lignite-based thermal power plants establish a minimum capacity of Renewable Energy (RE) generation sources or procure and supply an equivalent amount of RE.
Ministry of Power Dissolves Uniform Renewable Energy Tariff Mechanism
The Ministry of Power has decided to withdraw the Uniform Renewable Energy Tariff (URET) mechanism and dissolve the associated ‘Solar Power Central Pool’ and ‘Solar-Wind Hybrid Central Pool’ with immediate effect. This decision was made in response to concerns from Renewable Energy Implementing Agencies (REIAs) and developers regarding the reluctance of procurers to sign Power Sale Agreements (PSAs) due to tariff uncertainties over a three-year period. This Office Memorandum was issued on August 1, 2025.
Revised Draft Gazette Notification on Renewable Consumption Obligation (RCO) under the Energy Conservation Act, 2001
The Ministry of Power has released a revised draft notification on the Renewable Consumption Obligation (RCO), outlining an ambitious roadmap for designated consumers to increase their share of renewable energy over the next five years. This draft, which supersedes a previous notification from October 20, 2023, specifies mandatory RCO targets for electricity distribution licensees, open access consumers, and captive users, and is now open for stakeholder comments until August 19, 2025.
Ministry of Power Issues Guidelines for Designating Renewable Energy Implementing Agencies (REIAs)
The Ministry of Power has released Operational Guidelines for designating companies as Renewable Energy Implementing Agencies (REIAs). These guidelines aim to streamline and standardize the process of procuring power from grid-connected renewable energy projects through Tariff-Based Competitive Bidding (TBCB), thereby accelerating India’s renewable energy development.
Ministry of Power Delegates Project Approval Powers for Inter-State Transmission Systems
The Ministry of Power has announced an amendment to the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules, 2021. Through the newly enacted Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Amendment Rules, 2025, the Central Government has gained the power to delegate the approval of Inter-State Transmission System (ISTS) projects to key bodies.
Ministry of Power Amends Dispute Avoidance Mechanism for Hydro Projects
The Ministry of Power has announced significant amendments to its “Dispute Avoidance Mechanism” for construction contracts within Hydro Power Projects executed by Central Public Sector Enterprises (CPSEs). These revisions, made after consultations with the Central Electricity Authority (CEA) and various CPSEs, aim to refine the role and engagement of Independent Engineers (IEs) to prevent disputes and ensure seamless project progression.
Ministry of Power Proposes Key Amendments to Electricity Rules for Energy Storage Systems
The Union Ministry of Power has released a draft of proposed amendments to Rule 18 of the Electricity Rules, 2005, specifically addressing Energy Storage Systems (ESS). The proposed Electricity (Amendment) Rules, 2025 aim to clarify and update provisions related to the development, operation, and utilization of energy storage within India’s power sector. The Ministry is seeking comments from a wide array of stakeholders on these crucial changes within 30 days, by July 10, 2025.
Ministry of Power Introduces New Financial Instruments to Boost Transmission Project Bidding
The Ministry of Power has announced amendments to its Standard Bidding Documents (SBDs) for the procurement of Inter-State Transmission Services through the Tariff Based Competitive Bidding (TBCB) process. The Ministry has decided to include Insurance Surety Bonds (ISB) and Payment on Order Instruments (POI) as alternative security mechanisms to enhance flexibility and encourage wider participation from transmission developers.
CERC Notifies Escalation Rates for Imported Coal Power Procurement in April 2025
The Central Electricity Regulatory Commission (CERC) has notified the monthly escalation rates applicable for April 2025 for the purpose of payment for power procured by Distribution Licensees under the Ministry of Power (MOP) guidelines for tariff determination through bidding. Notably, the notified rates for imported coal and its associated transportation and handling charges are negative.
Government Directs Gas-Based Power Plants to Maximize Generation Amidst Rising Demand
The Government has issued directives under Section 11 of the Electricity Act, 2003, to all Gas-Based Generating Stations (GBSs) to maximize their electricity generation. These directives aim to ensure uninterrupted power supply during the anticipated peak demand period exacerbated by predicted above-normal temperatures.
Power Ministry Amends Rules on Late Payment Surcharge for Electricity
While the original rules specifically mentioned “inter-state transmission licensees,” the amendment removes the “inter-state” qualifier, suggesting that the rules will now apply to all transmission licensees, regardless of whether their operations span across states or are confined within a single state.
IIT Delhi Study Surveys SO2 Levels Near Thermal Power Plants
The IIT Delhi study provides insights into the current ambient SO2 levels near thermal power plants in India and raises questions about the overall environmental and economic implications of widespread FGD adoption. The findings suggest a need for a balanced approach that considers both air quality improvement and climate change goals, while also ensuring energy security.