Green energy obligation for coal-based plants notified

The power ministry has notified that coal-based plants that will start commercial operations between April 2023 and March 2025 must have a minimum 40% of its generating capacity through renewable energy sources.

Such plants could also procure and supply renewable energy equivalent to such capacity if not able to set it up, a notification from the ministry said.

"It has been decided that any generating company establishing a coal/lignite-based thermal generating station and having the COD of the project on or after 1stApril 2023 shall be required to establish renewable energy generating capacity of a minimum of 40% of the capacity of a coal/lignite-based thermal generating station," the notification read.


A coal or lignite based thermal generating station that starts operations will have to comply with the renewable generation obligation of 40% by April 2025.

Any other coal or lignite based thermal plant that may start after April 2025 will be required to comply with the obligation of 40% when operationalised. The move is aimed at faster energy transition.