The Rajasthan Electricity Regulatory Commission (RERC) has issued draft amendments to its Renewable Purchase Obligation (RPO) Regulations, 2023, proposing changes to align the state’s framework with recent central government notifications under the Energy Conservation Act.

Stakeholders can submit their comments and suggestions by March 23, 2026.

The proposed Rajasthan Electricity Regulatory Commission (Renewable Purchase Obligation) (First Amendment) Regulations, 2026, seek to update the structure of renewable obligation categories and compliance mechanisms in line with the Ministry of Power’s revised renewable consumption framework.

Distributed Renewable Energy

A key feature of the draft amendment is the introduction of a Distributed Renewable Energy category. The regulation defines distributed renewable energy as electricity generated from renewable energy projects below 10 MW, including solar installations under configurations such as net metering, virtual net billing, and behind-the-meter installations, along with other configurations notified by the central government and covered under the Commission’s regulations.

Under the proposal, distribution licensees (DISCOMs), including deemed licensees, must meet a specified share of their renewable obligation from such distributed renewable energy projects.

Renewable Obligation Trajectory

The draft maintains the renewable obligation trajectory already adopted from central government notifications, but restructures its internal components. The earlier categories of wind RPO, hydro purchase obligation (HPO), and other RPO are proposed to be replaced with four components: wind energy, hydro energy, distributed renewable energy, and other renewable energy.

For DISCOMs, the proposed total renewable obligation trajectory would be:

The draft regulation specifies that shortfalls in wind, hydro, and other renewable categories may be offset by surplus generation from the other categories, while the distributed renewable energy obligation is non-fungible for shortfalls, although surplus distributed renewable energy may offset other renewable components.

Compliance Mechanisms

The draft introduces additional mechanisms through which obligated entities may meet their renewable obligations. These include direct consumption of renewable electricity, including through energy storage systems; purchase or self-generation of renewable energy certificates (RECs), including RECs acquired through virtual power purchase agreements; and payment of a buyout price specified by the Central Electricity Regulatory Commission if obligations are not met.

Amounts collected through the buyout mechanism would be credited to the Central Energy Conservation Fund, with 75% of the amount transferred to the respective State Energy Conservation Funds to support the development of renewable energy sources and energy storage capacity.

Applicability and Exemptions

The draft regulations clarify the applicability of renewable obligations across consumer categories. For DISCOMs, the obligation would be calculated based on electricity supplied to consumers within their distribution area.

For open access consumers, the obligation would apply to electricity drawn from the grid. For captive users, the obligation would apply to electricity generated and self-consumed, excluding auxiliary consumption.

The draft also specifies several exclusions and adjustments, including provisions related to waste heat recovery systems, certain industrial energy recovery processes, fossil-fuel-based cogeneration plants, and electricity consumption in aluminum smelters.

The draft regulations also state that from FY 2026-27 onward, RPO targets, monitoring, and compliance enforcement will be governed by notifications, rules, guidelines, or orders issued by the central government under the Energy Conservation Act, 2001.

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