Renewable Energy Obligations

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Renewable Energy Obligations

Renewable energy obligations require electricity distribution companies and certain large electricity consumers to procure a minimum share of their electricity from renewable energy sources.

These obligations are implemented through regulatory mandates issued by the Ministry of Power and electricity regulators.

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Key Regulations and Policies

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Renewable Purchase Obligation (RPO)

Renewable Purchase Obligations require electricity distribution companies, open access consumers and captive power producers to procure a minimum percentage of electricity from renewable sources.

Official trajectory notification
https://powermin.gov.in/sites/default/files/Renewable_Purchase_Obligation_and_Energy_Storage_Obligation_Trajectory_till_2029_30.pdf

Renewable Energy Obligations

Renewable Consumption Obligation (RCO)

The Renewable Consumption Obligation requires designated consumers to meet a minimum share of their electricity consumption through renewable energy. The notification strengthens demand for renewable power and complements existing RPO frameworks.

This has replaced RPO targets.

Official notification
https://beeindia.gov.in/sites/default/files/Revised%20draft%20notification%20on%20RCO%20under%20EC%20Act%20(3).pdf

Renewable Energy Obligations

Renewable Energy Certificate (REC) Mechanism

The REC mechanism enables renewable energy generators to sell renewable attributes separately from electricity generation, creating a market based instrument to support renewable deployment.

REC Registry of India
https://www.recregistryindia.nic.in/index.php/publics/AboutREC

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