RPO was defined under Section 86(1) (e) of the Electricity Act 2003 (EA 2003) and National Tariff Policy 2006
Renewable Purchase Obligation
Renewable purchase obligation (RPO),is a mechanism by which the obligated entities of all the States and Union Territories are obliged to purchase certain percentage of electricity from Renewable Energy sources, as a percentage of the total consumption of electricity.
Obligated Entitiesincludes Distribution Companies (Discoms), Open Access Consumers and Captive power producers
RPOs are categorised as Solar and NonSolar RPO.
With the objective to achieve the target of 500 GW of renewable energy by 2030, including solar energy capacity of 100 GW, Ministry of Power (MoP) have notified the target RPO trajectory up to year 2030..