**Executive Summary**
This document, issued by the Indian Ministry of Power on August 6th, 2025, provides clarification on the Renewable Generation Obligation (RGO) outlined in the Ministry's resolution dated February 27th, 2023. It addresses RGO compliance for coal/lignite-based thermal generating stations and clarifies the role of subsidiaries in fulfilling these obligations. The voluntary nature of establishing a minimum capacity of Renewable Energy generation sources is emphasized.
**Key Points / Main Content**
* **RGO Mandate:**
* Generating companies establishing coal/lignite-based thermal generating stations with a Commercial Operation Date (COD) on or after April 1st, 2023, must establish a minimum capacity of Renewable Energy (RE) generation sources or purchase and supply the RE equivalent.
* **RGO Compliance Timeline:**
* For stations with COD between April 1st, 2023, and March 31st, 2025, RGO compliance may be achieved by April 1st, 2025.
* Thermal generating stations with COD after April 1st, 2025, must comply with an RGO of 40% by the COD.
* **Subsidiary Compliance:**
* RE generated, procured, and supplied by a wholly-owned subsidiary of the generating company or a wholly-owned subsidiary of a Joint Venture (JV) company can be counted towards RGO compliance for the generating company or the JV company.
* **Voluntary Capacity Establishment:**
* The establishment of a minimum capacity of Renewable Energy generation sources or purchase and supply the renewable energy equivalent to such capacity is voluntary.
**Impact Analysis**
**Principal Secretary/Secretary in charge of Energy/Power Department, All States/UTs:**
* **Impact:** The clarification informs them of the rules for Renewable Generation Obligation (RGO) compliance and the role of subsidiaries.
* **Action Required:** Ensure that RGO compliance for coal/lignite-based thermal generating stations adheres to the Ministry's Resolution and related clarification.
**CMDs Heads of all CPSUs:**
* **Impact:** The clarification specifies the RGO requirements for their coal/lignite-based thermal generating stations and subsidiary companies.
* **Action Required:** Implement strategies to meet RGO requirements, considering the flexibility of using subsidiaries for compliance.
**DG, APP and IPPAI:**
* **Impact:** The clarification informs them of the latest interpretation of the Renewable Generation Obligation (RGO) requirements.
* **Action Required:** Understand and consider the RGO clarifications in their operations and future planning.
Key Entities Referenced
Renewable Generation Obligation (RGO): A policy mandating that coal/lignite-based thermal generating companies establish a minimum capacity of Renewable Energy (RE) generation sources or purchase and supply the RE equivalent to such capacity.
Ministry of Power: The central ministry responsible for the Resolution and clarification regarding RGO compliance.
48-17 t 1 t 2025-N RE SECTION
Government of lndia
Ministry of Power
***
shram shakti Bhawan, Rafi Marg,
New Delhi, 06th Augusl,2025
To,
1. Principal secretary/Secretary in charge of Energy /Power Department, All states /UTs'
2. CMDs Heads of all CPSUS.
3. DG, APP and IPPAI
subject: clarification on Renewable Generation obligation (RGO)
Madam,
Sir / .
I am directed to refer to the Ministry of Power's Resolution even number dated
2zth Febr;aiiiit on Renewabte Generation obligation (RGo) mandating the Generating
company establishing a coal/lignite-based theimal generating station having the
Commercial operation' Date (Cod) of the project on or after 1'tApril 2023 to establish a
minimum capacity of Renewable Energy 1if; generation sources or purchase and supply
the RE equivalent to such capacity.
2. The Resolution mandates that the coal/Lignite based thermal generating
Strtion, having COO tetween 1't April 2023 to 31't March 2025, RGO may be complied by
iJ6;i zoisli"rmat generating station having CoD after l"tApril 2025 shall be required
to comply with RGO of 40% bY the COD'
3. This ministry has received representations seeking clarification. regarding RGO
compliance tnrough subsidiaries. Aft,er careful consideration, it is clarified that RE
generated or proiured and supplied by wholly owned subsidiary of the Generating
company or wholly owned sunsioiary of any of the companies of a Joint Venture (JV)
company shall be iounted towards nCO compliance for the Generating Company or the JV
companv establishing Coal i Lignite based thermal generating station. lt is also clarified that
establishment of a mi-nimum ca[acity of Renewable Energy generation sources or purchase
and supply the renewable energy equivalent to such capacity, as mentioned in the subject
notification is voluntarY.
4,ThisissueswiththeapprovalofCompetentAuthority.
fgithfullY,
,Yours
W%tq"
(Sunil Kumar Shdrma)
Director (NRE/RCM)
Emai I : su ni l.sharm aZ4@gov .in
Copy for information to1.
Chairperson, CEA
2.
Secretary, CERC/FOR,
3.
Secretary, AIISERCs
4.
All JS/CE of Ministry of power & Economic Advisor, Ministry of power
5.
ST.PPS to Secretary (power)
6.
Sr PPS to Addt Secretary (R&R)
7.
PSO to CE (R&Ry pA to Director (NRE), Ministry of power