Renewable purchase obligation (RPO) and renewable consumption obligation (RCO)

    ESG & Governance

    Legal requirements for large electricity users to get a minimum share of their power from renewable sources.

    RPOs were set by state electricity regulators under the Electricity Act. Since 2023, the Ministry of Power has set renewable consumption obligations under the Energy Conservation Act for designated consumers, including distribution companies, open access consumers and captive users. The revised notification of 27 September 2025 raises the total obligation from 29.91% in FY 2024-25 to 43.33% by FY 2029-30. Consumers can comply through renewable power, RECs or a buyout price.

    Related terms