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Power Decarbonisation Obligations (PDOs). Should Indian discoms focus on PDOs instead of RPOs?

Source : Financial Express

Notes by Narsi

Renewable power costs have fallen drastically, obviating the need for Renewable Power Obligations. I think this is something most of us will readily agree on.

Is there something that could be introduced to accelerate the low carbon transition of the Indian power sector?

The authors, both veterans in the Indian power & utility sectors, argue that Power Decarbonization Obligations (PDOs) in which the distribution companies have to reduce their exposure/purchase of coal power to a certain extent every year, could be a potent arrow in the decarbonization quiver.

A valuable perspective for economists and policymakers to reflect upon.

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