The Electricity Act and National Action Plan on Climate Change (NAPCC) provide a roadmap for increasing the renewable energy in total generation. Renewable Purchase Obligation (RPO) is the obligation mandated by Central/State Regulatory Commission and is applicable to:
1. Distribution Licensee: Power Distribution Companies (DISCOMs);
2. Open Access Consumer: those Procuring power from power exchanges (IEX/PXIL), from traders, through bilateral agreements, etc.;
3. Captive consumer: those Generating and consuming power from captive coal/natural gas power plants (primarily industrial users in cement, steel, chemical etc. sectors.).
The Regulatory Commission in each State mandates a certain percentage of electricity generated through the above process to be from renewable sources.