New Delhi, Oct. 14 -- The draft Electricity (Amendment) Bill 2025, released by the power ministry, could deliver a boost to renewable energy (RE) and distribution companies (discoms). A crucial proposal is the requirement that state discoms meet renewable purchase obligations (RPOs) fixed by the central government and pay a penalty in case of shortfall. RPOs now account for 30% of total power procured, and this is estimated to increase to 43% by fiscal year 2030 (FY30).

The bill also empowers the Central Electricity Regulatory Commission to introduce market-based instruments to enhance trade in RE. This would help discoms meet their needs from the market without having to enter into binding, long-term power purchase agreements.

To impro...