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The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a draft notification proposing amendments to its existing Renewable Energy Purchase Obligation (RPO) Regulations, 2023. These amendments are aimed at aligning the state’s regulations with the revised Renewable Consumption Obligation (RCO) targets set by the Ministry of Power (MoP), Government of India. The proposed changes are open for public suggestions or objections until June 5, 2025. According to the notification, the amended regulation will be called the Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligation) (Amendment) Regulation, 2025, and it will come into force from April 1, 2024. It mandates all obligated entities—such as distribution licensees, captive power plant owners, and open access consumers—to meet specific targets for renewable energy consumption annually. These targets are divided into four components: Wind Renewable Energy, Hydro Renewable Energy, Distributed Renewable Energy, and Other Renewable Energy. For the year 2024-25, the total RPO target is 29.91%, which will progressively increase each year to reach 43.33% by 2029-30. The detailed breakdown includes increasing percentages for each renewable energy category over the years. For example, the Wind Renewable Energy requirement begins at 0.67% in 2024-25 and rises to 3.48% in 2029-30. Similar increments are outlined for other components. The regulation includes specific conditions for meeting these targets. Wind energy must come from projects commissioned after March 31, 2024. Hydro energy must also be sourced from new projects, including small hydro and pump storage projects. Distributed renewable energy must be generated from projects smaller than 10 MW and includes installations under net metering or gross metering. The amendments allow for some flexibility in meeting targets. If there’s a shortfall in wind or hydro energy consumption in a given year, the surplus from the other can be used to compensate. Also, any excess in the “Other Renewable Energy” category may be used to cover shortfalls in wind or hydro categories. Designated consumers under the Energy Conservation Act, 2001 must meet their renewable energy obligations either directly or through Renewable Energy Certificates, and failure to comply will be treated as a regulatory default. The Tamil Nadu Green Energy Corporation will be responsible for maintaining and reporting compliance data to the Commission every quarter. The explanatory statement attached to the draft regulation clarifies that these amendments are necessary because of the new RCO targets issued by the MoP in October 2023. These new targets supersede all previous RPO-related orders, making compliance mandatory for all designated consumers, including captive users. The draft amendments represent a structured move towards higher renewable energy adoption in Tamil Nadu. By specifying annual targets and creating accountability mechanisms, the TNERC aims to ensure that the state aligns with national energy transition goals while also encouraging the development of new renewable energy projects. |
