Question : The "Renewable Purchase Obligation" (RPO) is a policy that mandates:
Option 1: Industries to reduce their carbon emissions
Option 2: Power companies to purchase a certain percentage of their electricity from renewable sources
Option 3: Individuals to install solar panels on their rooftops
Option 4: Vehicles to meet certain emission standards
Correct Answer: Power companies to purchase a certain percentage of their electricity from renewable sources
Solution :
The correct answer is (B) Power companies to purchase a certain percentage of their electricity from renewable sources.
The "Renewable Purchase Obligation" (RPO) is a policy mechanism that mandates power distribution companies and large electricity consumers to procure a specific percentage of their total electricity consumption from renewable energy sources. The purpose of RPO is to promote the development and use of renewable energy in the electricity sector.
Under the RPO mechanism, power companies are required to meet a specified target for renewable energy procurement. This target is usually expressed as a percentage of their total electricity consumption. The exact percentage varies from country to country and can also differ between states or regions within a country.
By imposing RPOs, governments aim to increase the share of renewable energy in the overall electricity mix, reduce dependence on fossil fuels, and promote the growth of the renewable energy sector. This policy mechanism creates a market for renewable energy and provides incentives for the development of renewable energy projects.