The Rajasthan Electricity Regulatory Commission (RERC) has introduced new renewable energy compliance requirements, distributed renewable energy targets, and aligned the state rules with the central government’s renewable consumption obligation (RCO) framework.

The regulations titled Rajasthan Electricity Regulatory Commission (Renewable Purchase Obligation (First Amendment)) took effect on April 1, 2026.

Distributed Renewable Energy

The amended regulations defined distributed renewable energy as projects not exceeding 10 MW. These comprise solar projects under net metering, gross metering/net billing, virtual net metering, group net metering, behind-the-meter installations, and any other configuration.

Governance

The Commission clarified that consumers covered under the Energy Conservation Act, 2001, will be governed by the renewable energy compliance notifications issued by the central government. These notifications will take precedence if they conflict with the state’s renewable purchase obligation (RPO) regulations.

RERC said distribution companies (DISCOMs) meeting RCO targets under the Energy Conservation Act, 2001, for the financial years (FY) 2025 and 2026 will be considered compliant with Rajasthan’s RPO requirements.

The Commission will not initiate separate RPO-related enforcement or penalty proceedings if any shortfall in obligations is being addressed under the central government framework. However, these provisions will not affect RPO proceedings already pending before the Commission for periods before FY 2025.

RPO Target

The regulations introduce additional RPO requirements, including new renewable energy targets starting from FY 2027. These provisions cover categories such as wind, hydroelectricity, and distributed renewable energy, as well as requirements for how electricity companies must comply.

The annual renewable energy targets that DISCOMs in Rajasthan must meet from FY 2027 onwards are as follows:

Under the amended regulations, wind energy and hydroelectricity obligations must be met using power generated from projects commissioned after March 2024. The regulations allow hydroelectricity obligations to be met through free power allocated to the state or through projects located outside India with central government approval.

Shortfalls under wind, hydroelectricity, and other renewable energy categories can be offset using surplus procurement from other categories. However, shortfalls in distributed renewable energy obligations cannot be met using other renewable energy sources. The Commission also excluded nuclear power from RPO compliance calculations.

RERC added that designated consumers, including DISCOMs, open access consumers, and captive users, will be governed by the RCO framework under the Energy Conservation Act, 2001. For FYs 2025 and 2026, compliance with RCO targets will be considered adequate to meet Rajasthan’s RPO requirements.

From FY 2027 onward, RCO targets, monitoring, and enforcement for designated consumers will continue to be governed entirely by central government notifications and guidelines.

Obligated entities not classified as designated consumers under the Energy Conservation Act, 2001, must continue to comply with RPO requirements under existing state regulations, and the RERC (Renewable Energy Certificate and RPO Compliance Framework) Regulations, 2010. Any shortfall proceedings will be covered under existing regulations.

From FY 2027 onward, RPO targets, monitoring, and enforcement for DISCOMs, captive power plants, and open access consumers will continue to be governed by the RERC Renewable Purchase Obligation Regulations, and the RERC (Renewable Energy Certificate and Renewable Purchase Obligation Compliance Framework) Regulations, 2010.

Change in Status

If an obligated entity changes its status from designated to non-designated, or vice versa, during the financial year, its renewable energy compliance will be assessed under the prevailing framework for each transition period.

Entities must inform the state agency within 30 days of such changes in status.

The Commission stated that even for such changes, the central government notifications will take precedence if it conflicts with the state’s RPO regulations.

Under the new regulations, energy storage obligations will continue to apply to DISCOMs, with compliance verification undertaken by the designated state agency.

The state agency refers to the agency appointed under RERC’s renewable energy compliance framework to verify and monitor compliance.

This April, RERC announced a demand flexibility portfolio obligation target of 0.25% for the state DISCOMs for the FY 2027.

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