Which of the following statements regarding renewable purchase obligation amp power purchase are tru...........

Geography Renewable Energy

Which of the following statements regarding renewable purchase obligation & power purchase are true :

1) RPOs make it obligatory for distribution companies, open-access consumers and captive power producers to meet part of their energy needs through green energy.

2) These certificates are a tool for promoting comparative advantages among banks while they meet their priority sector lending obligations

3) Ministry of Power has mandated that 21 per cent of all power purchased by a power distribution company during FY22 will have to be generated from renewable sources

Code:

1 and 2 only

2 and 3 only

1 and 3 only

All are coorect

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Explanation:

About RECs:

RECs are widely used in the renewable purchase obligations by companies and states.
Launched in 2010,Pre-defined RPO target for all states, currently ranges from 3 per cent to 10 per cent of the total energy requirement of the states. RPO is divided in two parts- solar RPO and non-solar RPO.
The states or utilities that are unable to fulfil their RPO can buy RECs, which represents 1mw-hour of power produced from a renewable energy source.
There are around 12,000 projects under REC mechanism with a total capacity of 5,383 MW.
The issue will have repercussion for priority sector lending certificates (PSLCs). These certificates are a tool for promoting comparative advantages among banks while they meet their priority sector lending obligations. Banks with a comparative advantage in lending to the priority sector earn these certificates, while those falling short of the target are required to buy these papers.