Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-29092025-266517
EXTRAORDINARY
PART II-Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 4301]
NEW DELHI, SATURDAY, SEPTEMBER 27, 2025/ASVINA 5, 1947
MINISTRY OF POWER
NOTIFICATION
New Delhi, the 27th September, 2025
S.O. 4421(E).—In exercise of the powers conferred by clauses (n) and (x) of section 14 of the Energy
Conservation Act, 2001 (52 of 2001), (hereinafter referred to as the Act) and in supersession of the notification of the
Government of India, in the Ministry of Power, published vide number S.O. 4617 (E), dated the 20th October, 2023,
except as respects things done or omitted to be done before such supersession, the Central Government in consultation
with the Bureau of Energy Efficiency, hereby specifies the minimum share of electrical energy consumption from
renewable energy for designated consumers, who are electricity distribution licensees, open access consumers and
captive users. For open access consumers and captive users, this requirement applies to electricity consumption from
sources other than distribution licensee.
2. The specified minimum share of electrical energy, referred to in first paragraph, from renewable energy sources as
percentage of total electrical energy consumption (hereinafter referred to as the Renewable Consumption Obligation)
for each category, shall be as per the details given in the Table below: -
TABLE
Sl. No. | Year | Wind energy | Hydro energy | Distributed renewable energy* | Other renewable energy | Total renewable energy
--------+----------+-------------+--------------+-----------------------------+------------------------+---------------------
(1) | (2) | (3) | (4) | (5) | (6) | (7)
1. | 2024-25 | 0.67% | 0.38% | 1.50% | 27.36% | 29.91%
2. | 2025-26 | 1.45% | 1.22% | 2.10% | 28.24% | 33.01%
3. | 2026-27 | 1.97% | 1.34% | 2.70% | 29.94% | 35.95%
4. | 2027-28 | 2.45% | 1.42% | 3.30% | 31.64% | 38.81%
5. | 2028-29 | 2.95% | 1.42% | 3.90% | 33.09% | 41.36%
6. | 2029-30 | 3.48% | 1.33% | 4.50% | 34.02% | 43.33%
Note1*: For hilly and North-Eastern States and Union territories, namely, Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand, Union territory of Jammu
and Kashmir and Union territory of Ladakh, the Distributed renewable energy obligation shall be 50% of the
level specified in the Table. For distribution licensees serving exclusively urban consumers, the Distributed
renewable energy obligation shall be 75% of the specified level. The remaining Distributed renewable energy
component obligation for these States and Union territories shall be included in the Other renewable energy
component.
Note 2: The obligation under the Wind energy component shall be met by energy produced from Wind Power Projects
commissioned after 31st March, 2024.
Note 3: The obligations under the Hydro energy component shall be met by energy produced from Hydro Power
Projects, commissioned after 31st March, 2024:
Provided that the obligation under the Hydro energy component may also be met out of the free power being provided
to the State or distribution licensee from such Projects:
Provided further that the obligation under the Hydro energy component may also be met from Hydro Power Projects
located outside India, as approved by the Central Government, on a case- to-case basis.
Note 4: The obligation under the Distributed renewable energy component shall be met from the energy generated from
renewable energy projects that do not exceed 10 MW in size and shall include solar installations under all
configurations (net metering, gross metering, virtual net metering, group net metering, behind the meter
installations and any other configuration) and Other renewable energy sources notified by the Central
Government:
Provided that the compliance against Distributed renewable energy obligation shall ordinarily be considered
in terms of energy (kilowatt hour units):
Provided further that in case the designated consumer is unable to provide generation data against Distributed
renewable energy installations, the reported capacity shall be converted into Distributed renewable energy
generation in terms of energy by a multiplier of 4 kilowatt hour per kilowatt per day (kWh/kW/day).
Note 5: The obligation under the Other renewable energy component may be met by electrical energy produced from
any renewable energy project other than specified in Notes 2, 3 and 4. Other renewable energy shall include,
but not limited to, electrical energy generated from all,-
(i) Wind Power Projects;
(ii) Hydro Power Projects, including free power, commissioned before 1st April, 2024; and
(iii) co-firing of biomass pellets and charcoal produced from Municipal Solid Waste.
3. Obligations under Wind, Hydro, and Other renewable energy components are fungible (shortfalls in one may be met
by surpluses from others), while Distributed renewable energy is non-fungible for its shortfall but its surplus may offset
other components.
4. For all the designated consumers, the Renewable Consumption Obligation shall exclude electricity consumed from
Nuclear Power Sources.
5. Open access consumers and captive users specified as designated consumers shall meet the specified total Renewable
Consumption Obligation, from any renewable energy source.
6. For open access consumers specified as designated consumers, Renewable Consumption Obligation shall include
electrical energy consumption at the point of drawal from the grid.
7.(a) For captive users specified as designated consumers, Renewable Consumption Obligation shall include electricity
generated and self-consumed, excluding auxiliary consumption. The obligation shall exclude electricity generated and
self-consumed from waste heat recovery process using fossil-based sources, except for electricity generated from a
Waste Heat Recovery Steam Generator in a captive Combined Cycle Gas-Based Generating Station. The obligations
shall also exclude electricity generated and self-consumed through waste energy recovery, including from by-product
gases, or other forms of residual energy sources associated with industrial processes.
(b)The obligation shall exclude, -
(i) 50% of the electricity generated and self-consumed from fossil-fuel based co-generation plant; and
(ii) 50% of the fossil fuel-based electricity consumed in Aluminum smelters.
(An illustrative example is provided in Annexure-I attached to this notification).
8. For designated consumers who are distribution licensees, the Renewable Consumption Obligation shall be calculated
based on the electrical energy supplied to consumers within the periphery of the distribution licensee. This supply shall
not include the consumption of open access users from the sources other than the distribution licensee and the electricity
generated and self- consumed by captive users. (An illustrative example is provided in Annexure –I attached to this
notification.)
9. Designated consumers may fulfil the specified Renewable Consumption Obligation through one or more of the
following methods, namely: -
(i) consumption of renewable electricity, either directly or through an energy storage system;
(ii) purchased or self-generated Renewable Energy Certificates issued in accordance with regulations notified
by the Central Electricity Regulatory Commission including Renewable Energy Certificates acquired under
Virtual Power Purchase Agreements; and
(iii) payment of the buyout price specified by the Central Electricity Regulatory Commission:
Provided that the sums received through the buyout mechanism shall be credited to the Central Energy Conservation
Fund under a separate head, from which 75% of the amount shall be transferred to the respective State Energy
Conservation Funds. These sums shall be utilised to support the development of specified renewable energy sources
and storage capacities, with the objective of increasing the share of non-fossil fuel energy in the overall energy mix.
The Appropriate Government shall specify the mechanism for utilising these sums to support the development of such
non-fossil fuel capacities.
10. The Renewable Consumption Obligation compliance for multiple designated consumers under common control
shall be considered on an aggregate basis, at the holding company level as defined in the Companies Act, 2013 (18 of
2013), or at the level of a cooperative society registered under the relevant Co-operative Societies Acts, as the case may
be.
11. The Bureau shall monitor compliance of this notification and submit periodic report to the Central Government with
a copy to the respective State Electricity Regulatory Commissions. For compliance monitoring, all the designated
consumers shall furnish the required information in the format provided in the Annexure-II attached to this notification,
duly certified by the State Load Dispatch Center for distribution licensees, and by a Bureau empanelled accredited
energy auditing firm for all other designated consumers.
12. Designated consumers shall submit their duly certified energy accounts for the year 2024-2025 by 31st October,
2025, and by 31st July for each subsequent year. They shall submit compliance report after meeting the shortfalls in
Renewable Consumption Obligations through purchase of Renewable Energy Certificates or payment of buyout price,
if any, by 31st March 2026 for the year 2024-2025, and by 31st December for each subsequent year.
13. Any shortfall in meeting the Renewable Consumption Obligation shall be treated as non-compliance and penalty
may be imposed in accordance with the provisions under sub-section (3) of section 26 of the Act.
14. In case of a non-compliance of this notification including but not limited to shortfall in meeting the Renewable
Consumption Obligation, non-submission of required information, or submission of incorrect information, the Bureau
or the State designated agency may process for imposing penalty, in accordance with the provisions of the Act and the
rules made thereunder.
15. The Bureau shall issue detailed guidelines for implementation of this notification consistent with the provisions of
this notification.
16. For all designated consumers under the Act, no additional Renewable Purchase Obligation shall apply under the
Electricity Act, 2003 (36 of 2003), and the State-level Renewable Purchase Obligation targets shall be subsumed within
the Renewable Consumption Obligation targets specified in this notification.
[F.No. 9/13/2021 - RCM]
SRIKANT NAGULAPALLI, Addl. Secy.
ANNEXURE -I (see paragraphs 7 and 8)
Example 1: Imagine a designated consumer whose total electricity consumption in a year is 1,000 MU, which includes
the following:
Source |
------------------------------------------------------------------------------------------------------------------------+-----------
A. From Nuclear sources | 100 MU
B. Electricity generated and self-consumed from waste heat recovery process | 300 MU
C. Electricity generated and self-consumed from fossil-fuel based co-generation plant | 300 MU
D. Electricity purchased from Distribution Licensee | 100 MU
Ε. Renewable electricity consumed from grid-connected Captive sources, behind the meter installations, Open Access, or requisitioned at green tariff from distribution licensee | 200 MU
So, the adjusted consumption for RCO calculation becomes:
= Total consumption - (A + B + 0.5 x C+ D)
= 1000 MU – (100 + 300 + 0.5 x 300+ 100) MU = 350 MU
Therefore, the RCO compliance percentage is:
= (Renewable energy consumed (E) / Adjusted consumption) × 100
= (200 MU / 350 MU) × 100 = 57.14%
Example 2: Imagine a Distribution Licensee has a total electricity input at its periphery (excluding inter-state and intra-
state transmission losses) of 30,000 MU in a year, which includes:
Source |
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+-----------
A. From Nuclear sources | 2,000 MU
B. From renewable sources including hydro, wind, solar and co-firing of biomass and municipal solid waste | 10,000 MU
C. Distribution losses | 1,500 MU
D. Renewable Energy requisitioned by consumers of distribution licensee as per Green Energy Open Access Rules, and supplied by distribution licensee at Green Tariff | 900 MU
Ε. From fossil sources | 18,000 MU
In addition to 30,000 MU electricity input, 500 MU is generated from roof top and injected into the Grid
(F)
Adjusted consumption for RCO calculation:
=Total input +F – A – D
= 30,000 +500 – 2000–900
= 27,600 MU
Renewable energy consumed:
= B+F
=10,000 MU + 500 MU= 10,500 MU
RCO compliance percentage:
= (Renewable energy consumed / Adjusted consumption) × 100
= 10,500 MU / 27,600 MU× 100 = 38.04%
ANNEXURE-II (see paragraph 11)
Format for Submission of Information to Bureau by Distribution Licensees
Section A – Basic Information
1. Name of Designated Consumer:
2. Registration No.:
3. Target Year (FY):
4. State:
Section B - Gross Total Electricity Consumption (MU)
1. Purchase and Banking of Fossil-Based Power:
2. Purchase of Nuclear Power (Excluded from RCO):
3. Electricity Sales (Sub-Total):
a. Sales to Non-DISCOM Consumers:
b. Banking (Supply):
4. Net Total Electricity Consumption for RCO:
5. Distribution Losses (% within DISCOM periphery):
Section C - Renewable Electricity Consumption
Enter values in MU under each source:
1. Own Generation / Purchase / Banking:
a. Wind: b. Hydro: c. DRE: d. Other RE:
2. RE Sales and Banking (to Non-DISCOM Consumers):
a. Wind: b. Hydro: c. DRE: d. Other RE:
3. RE from Banking (Receipt):
4. Renewable Electricity considered for RCO compliance:
Section D – RCO Compliance Summary
1. Renewable Energy Certificates (RECs)/ Buyouts, if any, purchased:
a. RECs Purchased: b. RECs Self-retained: c. Buyouts Purchased:
2. RCO Targets specified by MoP (%):
a. Wind: % b. Hydro: % c. DRE: % d. Other RE: %
3. Target MU per Source:
a. Wind: b. Hydro: c. DRE: d. Other RE:
4. Compliance MU per Source:
a. Wind: b. Hydro: c. DRE: d. Other RE:
5. Compliance Achieved (%):
6. Surplus / Deficit in MU:
7. Surplus / Deficit (%):
Undertaking
I/We hereby declare that the information provided above is true and accurate.
Signature and Seal of MD / CEO:
Signature and Seal of State Load Dispatch Center:
Format for Submission of Information to Bureau by Captive and Open Access Consumers
Section A – Basic Information
1. Name of Designated Consumer:
2. Industry:
3. Registration No.:
4. Target Year (FY):
Section B - Gross Total Electricity Consumption (MU)
1. Own Electricity Generation (Net after Auxiliary Power Consumption):
a. Total Fossil-based Generation:
b. Co-generation (Fossil-based):
c. WHR (Fossil-based based):
d. Waste Energy Recovery (Fossil-based):
e. Auxiliary Power Consumption (excluding WHR):
2. Electricity Purchase via Discom, Open Access and Banking:
a. Fossil (PPA/Exchange):
b. Banking (Drawl):
c. From DISCOM :
3. Electricity Sales and Banking (Outflow):
a. Fossil Electricity Sales:
b. Banking (Storage):
4. Net Electricity Consumption for RCO:
Section C - Renewable Electricity Consumption (MU)
1. Own RE Generation, Purchase and Banking:
a. RE Generation (Excluding RE firing in CPP):
b. RE from Co-firing in CPP:
c. Banking (Drawl):
d. RE purchased from Distribution Licensee:
2. RE Sales and Banking (Outflow):
a. Sale of RE:
b. Banking (Storage):
3. Green Hydrogen and Green Ammonia (Electricity Equivalent):
a. GH2: b. Green Ammonia:
4. Gross Renewable Electricity Consumption:
Section D – RCO Compliance Summary
1. Renewable Energy Certificates (RECs)/ Buyouts Purchased:
a. RECs Purchased: b. RECs Self-Retained: c. Buyouts Purchased:
2. RCO Target as per MoP (%):
3. RCO Target (MU):
4. Compliance Achieved (MU):
5. Compliance (%):
6. Surplus / Deficit (MU):
7. Surplus / Deficit (%):
Undertaking
I/We hereby declare that the information provided above is true and accurate.
Signature and Seal of Energy Manager / Plant Head:
Signature of the Accredited Energy Auditor,
Name and Seal of Energy Auditing Firm:
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
GORAKHA NATH
YADAVA
Digitally signed by GORAKHA
NATH YADAVA
Date: 2025.09.29 16:19:44 +05'30'