Power Ministry issues revised renewable consumption obligation rules

The Ministry of Power (MoP) has notified a revised renewable consumption obligation (RCO) framework under the Electricity (Amendment) Rules, 2025. The new rules unify state-level renewable purchase obligations (RPOs) under a single national compliance mechanism framed through the Energy Conservation Act, 2001.

The framework applies to distribution licensees, open access consumers, and captive users. It replaces the earlier structure issued in October 2023, while retaining the national RCO trajectory through FY2030.

For compliance purposes, distributed renewable energy projects of up to 10 MW will continue as a separate component. The revised rules set the normative generation from such projects at 4 kWh per kW per day.

The denominator for RCO compliance excludes electricity sourced from nuclear power, certain waste heat recovery systems, and specified fossil fuel-based cogeneration projects. The rules allow group-level aggregation of compliance for registered cooperative societies and holding companies.

For FY2024–25, entities must submit energy accounting by October 31, 2025, with final compliance due by March 31, 2026. From FY2025–26 onwards, the compliance cycle will run from July to December each year.