The Ministry of Power has extended the deadline for submission of Renewable Consumption Obligation (RCO) compliance details for the financial year 2024–25 to May 31, 2026, following representations from obligated entities citing challenges in meeting the earlier timeline.

The extension from the earlier timeline of March 31, 2026, applies to designated consumers, who are mandated under India’s energy efficiency and renewable consumption framework to meet specified targets for renewable energy use and submit compliance data.

The Ministry issued the notification on the renewable consumption obligation in October 2023. The Bureau of Energy Efficiency (BEE) acts as the nodal agency for monitoring and facilitating compliance among designated consumers.

These entities, typically large industrial and commercial energy users, are required to adhere to RCO norms as part of broader efforts to increase the adoption of renewable energy and reduce dependence on conventional power sources.

The ministry prescribed an RCO regime for designated consumers to achieve a 43.33% target by the financial year 2030. The regulation specifies a minimum share of renewable energy consumption for electricity distribution licensees, open access consumers, and captive users.

The 2030 target comprises 3.48% from wind energy, 1.33% from hydropower, 4.5% from distributed renewable energy, and 34.02% from other renewable energy sources. The shortfalls in RCO under wind, hydro, and other renewable energy can be met through surplus from other obligation components.

Earlier this year, the BEE issued the draft operational procedure for designated consumers to comply with RCO.

In February this year, the Central Electricity Regulatory Commission determined the buyout price as an alternative compliance mechanism for electricity distribution licensees, open access consumers, and captive consumers to meet the RCO requirements notified by the Ministry of Power. The determined prices will remain in force until FY 2029–30.

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