Author: PPD Team Date: 26/05/2025
The Ministry of Power (MoP) and the Bureau of Energy Efficiency (BEE) have issued fresh directives to ensure compliance with the Renewable Consumption Obligations (RCO) framework. This applies to designated consumers, including captive power plants (CPPs) and open access (OA) users.
The RCO system stems from amendments made to the Energy Conservation Act, 2001 in 2022. It replaces older Renewable Purchase Obligation (RPO) guidelines and mandates a rising share of renewable energy use each year up to FY 2029-30.
Despite this update, some State Electricity Regulatory Commissions (SERCs) have continued applying outdated RPO norms. To address this, the MoP issued a clarification on 16th April 2025, stating that the 20th October 2023 notification on RCO is now fully enforceable. All previous RPO-related orders, including one dated 1st October 2019, have been superseded.
The BEE followed up with a notice on 14th May 2025, setting clear compliance steps for FY 2024-25. For this period, the RCO target is 29.91 per cent. The target will increase each year, reaching 33.01 per cent in FY 2025-26, 35.95 per cent in FY 2026-27, 38.81 per cent in FY 2027-28, 41.36 per cent in FY 2028-29, and 43.33 per cent in FY 2029-30.
Designated consumers are required to submit their RCO compliance reports for FY 2024-25 by 30th May 2025. These reports shall be certified by the plant head and audited by a BEE-empanelled Accredited Energy Auditor (AEA) by 31st July 2025.
Failure to meet the RCO targets or comply with submission deadlines will lead to penalties under Sections 26(3) and 26(4) of the Energy Conservation Act, 2001.
The MoP stressed that any deviation from the targets will be treated as non-compliance.