The Karnataka Electricity Regulatory Commission (KERC) has proposed new renewable energy targets for the state, aiming to reach 43.33% of total energy consumption from renewable sources by 2029-30.

In a draft notification, KERC outlined a progressive increase in Renewable Purchase Obligation (RPO) targets for distribution licensees, captive consumers, and open access consumers.

The draft is open for stakeholder comments until November 27, 2024.

The proposal sets a starting target of 29.91% for 2024-25, with specific sub-targets for wind, hydro, distributed, and other renewable energy sources.

Each distribution licensee must acquire a minimum percentage of its total energy consumption from electricity generated from non-fossil sources (renewable energy).

The RPO targets for distribution licensees covering the period from 2024-25 to 2029-30 is outlined in the table below:

Category-Specific Requirements

Hukkeri Rural Electric Co-operative Society (HRECS) and deemed licensees that buy bulk power, fully or partially, from an electricity supply company (ESCOM) will be considered compliant with RPO for that portion if the ESCOM itself meets its RPO.

In such cases, the ESCOM must provide HRECS or the deemed licensee with a quarterly RPO compliance report. However, if the ESCOM does not meet its RPO, the responsibility to fulfill the RPO falls on HRECS or the deemed licensee.

Grid-connected captive consumers and open access consumers must also source a portion of their energy from renewable sources, as specified, based on their total non-fossil energy consumption from sources other than distribution licensees.

These consumers can meet their RPO targets from any renewable source. For consumers operating units in multiple locations across Karnataka under a single legal entity, the combined RPO for all units in the state will be calculated to meet the required RPO.

These proposed amendments align with the Government of India’s notification on minimum consumption share from non-fossil sources.

If implemented, the new regulations will significantly impact the renewable energy landscape in Karnataka, pushing for a higher share of clean energy in the state’s power mix.

In August 2024, KERC introduced the KERC (Implementation of peer-to-peer Solar Energy Transaction) Regulations, 2024 to promote renewable energy and innovative technologies.

Recently, the Commission issued draft regulations to balance power generation and consumption and minimize deviations from scheduled generation and consumption patterns.