Q. Which of the following statements best describes “Renewable Purchase obligation”?

[A] .It is a policy instrument that requires distribution companies, energy producers and certain consumers to obtain a share of their electricity from renewable sources

[B] b.It refers to practices and policies undertaken by corporations established in India to increase their investment in renewable energy that will have a positive influence on the environment.

[C] It allows a country with an emission-reduction or emission-limitation commitment to implement a project in the renewable energy sector.

[D] d.It is a fee to be paid by an Individual to stop their personal vehicle from getting scrapped after it has failed the fitness test as announced in the recently released voluntary vehicle scrapping policy.

Answer: A
Notes:
  • Renewable purchase obligation (RPOs) are a policy instrument to ensure the uptake of renewable energy. They require Distribution companies (discoms), energy producers and certain consumers to obtain a share of their electricity from renewable sources.
  • As renewable deployment remains highly concentrated in a few resource-rich states. Enabling greater inter-regional transfer of RE can help reduce the financial burden on discoms. This can be done through the physical transfer of power through grid interconnections, or through the mechanism of tradable renewable energy certificates.