ASSESSING THE IMPACT OF RENEWABLE PURCHASE OBLIGATION ON INDIAN POWER SECTOR

Prateek Mundra, Anoop Arya, and Suresh K. Gawre

Keywords

Renewable energy (RE), renewable purchase obligation (RPO), renewable energy certificate (REC), data envelopment analysis (DEA)

Abstract

In the present scenario, almost all countries are struggling to meet their power shortage issues. An emerging notion states that there is a need to shift towards the unconventional sources of energy, therefore, necessary policy frameworks are needed across nations, which would progressively phase out the usage of non-renewables and employ renewable energy (RE) in the power sector. Most of the countries, including India, have instructed their power sectors to gradually shift their power generation portion by portion to RE sources by mandating some obligatory purchase by power sector entities, which is known as renewable purchase obligation (RPO). To fulfil the prescribed RPOs by the Government of India (GoI), the Indian power sector would encounter some economic backlash. This paper aims to capture quantitatively this impact of the power sector on economies and then perform efficiency analysis of the same. This study has considered data of 10 different states of the Indian power sector to calculate the impact of their respective RPOs on tariff as well as average power purchase cost (APPC) and then calculate their relative efficiencies by incorporating the data envelopment analysis (DEA) technique.

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