Indian states will have to fulfill 25% of their demands from renewable energy– wind, solar, hydro.
The Indian government is setting up penalties under the renewable purchase obligations(RPO) system, to fulfill the commitments that India made at the COP26 in Glasgow last year. India has committed to produce 500GW of renewable energy by the year 2040 and cut down 50% of its carbon emissions. Under the current RPO range the states are bound to fulfill 24%-43% of their demand from renewable energy, if states fail to do so they will be fined. States can buy renewable energy credits from surplus states or through power trading platforms.
India has a target of meeting 175GW of renewable energy production by the end of this year, it is still lagging behind with just 114GW of renewable energy. The renewable purchase obligations have been in place for a decade now (since 2010) but few states have met 100% of their demand through renewables in any year.