The Electricity Amendment Bill 2022 has proposed Renewable Purchase Obligation (RPO) for a state should not be below the minimum percentage prescribed by the central government. Failure to adhere to the minimum RPO target would lead to higher penalties. Infomerics Ratings believes that this is a step in the right direction as the increase in penalties for non-compliance of RPOs will force the power Distribution Companies (DISCOMs) to take the necessary steps to meet the annual RPO obligations else pay heavy penalties. This will be a strong deterrent considering their stressed finances. Strict RPO enforcement will ensure a positive trajectory in achieving the country’s Renewable Energy (RE) target of 500 GW by 2030.