Summary:
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## **1. Context**
* Issued under **Section 14(n) & 14(x) of the Energy Conservation Act, 2001**.
* Supersedes the earlier MoP notification **S.O. 4617(E) dated 20th October 2023** (except for actions already taken).
* Objective: Specify **minimum share of renewable energy consumption** (Renewable Consumption Obligation – RCO) for:
* **Electricity Distribution Licensees**
* **Open Access Consumers**
* **Captive Users**
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## **2. RCO Targets (as % of total electricity consumption)**
| Year | Wind | Hydro | Distributed RE (≤10 MW) | Other RE | Total RCO |
| ——- | —– | —– | ———————– | ——– | ——— |
| 2024-25 | 0.67% | 0.38% | 1.50% | 27.36% | 29.91% |
| 2025-26 | 1.45% | 1.22% | 2.10% | 28.24% | 33.01% |
| 2026-27 | 1.97% | 1.34% | 2.70% | 29.94% | 35.95% |
| 2027-28 | 2.45% | 1.42% | 3.30% | 31.64% | 38.81% |
| 2028-29 | 2.95% | 1.42% | 3.90% | 33.09% | 41.36% |
| 2029-30 | 3.48% | 1.33% | 4.50% | 34.02% | 43.33% |
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## **3. Key Provisions**
1. **Special Rules for Certain States/UTs**
* For **North-Eastern & Hilly States/UTs** (e.g., Arunachal, Assam, Himachal, Uttarakhand, J&K, Ladakh):
* **Distributed RE obligation = 50% of tabled values**.
* Balance merged into “Other RE”.
* For **urban-only DISCOMs**: Distributed RE obligation = **75% of tabled values**.
2. **Component-specific Notes**
* **Wind obligation** → From projects commissioned **after 31 March 2024**.
* **Hydro obligation** → From projects commissioned **after 31 March 2024**; can include free power to states/ licensees; even hydro projects outside India if approved by GoI.
* **Distributed RE obligation** → From ≤10 MW projects (solar rooftop/net/gross/group metering, behind-the-meter, other notified RE). If generation data unavailable, capacity → energy assumed as **4 kWh/kW/day**.
* **Other RE obligation** → Any RE project other than above, including:
* Wind & Hydro commissioned before 1 Apr 2024,
* Co-firing of biomass pellets/MSW-based charcoal, etc.
3. **Fungibility of Components**
* **Wind, Hydro, Other RE → fungible** (shortfalls can be compensated by surpluses).
* **Distributed RE → non-fungible** (shortfall can’t be compensated by others, but surplus can offset).
4. **Exclusions**
* Nuclear power consumption **excluded** from RCO.
* For captive users: Excludes WHRS (waste heat recovery with fossil fuels), by-product gases, residual energy from industrial processes, etc.
* Additionally excludes:
* 50% of self-consumed fossil-fuel co-gen power.
* 50% of fossil fuel electricity in aluminium smelters.
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## **4. Compliance Mechanisms**
Designated consumers can meet RCO through:
1. **Direct RE consumption** (or via storage).
2. **Purchase/self-generation of Renewable Energy Certificates (RECs)**, including those under Virtual PPAs.
3. **Payment of Buyout Price** (as notified by CERC).
* Funds go to **Central Energy Conservation Fund**, 75% transferred to **State EC Funds**, used for developing RE & storage capacities.
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## **5. Monitoring & Reporting**
* **Bureau of Energy Efficiency (BEE)** will monitor compliance, submit reports to GoI & SERCs.
* **Energy Accounting & Reporting**:
* DISCOMs → must get accounts certified by **SLDCs**.
* Captive & OA users → certified by **BEE-accredited energy auditors**.
* **Timelines**:
* Energy accounts → submit by **31 Oct 2025** (for FY 2024-25), and **31 July every year thereafter**.
* Compliance reports (after REC/buyout adjustment) → by **31 Mar 2026** (for FY 2024-25), and **31 Dec every year thereafter**.
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## **6. Penalties**
* **Shortfalls/non-compliance** = violation under **Section 26(3) of EC Act, 2001**, leading to penalties.
* Includes: failure to meet RCO, non-submission, or misreporting.
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## **7. Alignment with Electricity Act**
* No separate **Renewable Purchase Obligation (RPO)** under the Electricity Act, 2003.
* State-level RPO targets are **subsumed into national RCO targets**.
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## **8. Annexures**
* **Annexure I** → Illustrative examples of RCO calculation for:
* A designated consumer with mixed sources (nuclear, fossil, RE, WHR, etc.).
* A DISCOM with specified input mix (RE, nuclear, fossil, rooftop).
* **Annexure II** → Standard reporting formats for:
* **DISCOMs**
* **Captive Users & OA Consumers**
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