Energy disclosure: renewables, RPOs and certificates

For most companies, energy is where emissions begin: fuel burned in boilers and kilns, and electricity drawn from a coal-heavy grid. It is also a large and visible cost. That makes energy data one of the most useful parts of an ESG report, because it links directly to both emissions and profit.

Indian companies can now buy renewable power in several ways, from rooftop solar to long-term contracts with wind and solar farms in other states. At the same time, the government has made renewable consumption a legal obligation for large electricity users.

For analysts, the key questions are how much energy a company uses per unit of output, how much of it is renewable, how the renewable share was achieved, and whether the claim would survive stricter accounting rules.

Units

• 1 megawatt-hour (MWh) = 3.6 gigajoules (GJ)
• 1 tonne of oil equivalent (toe) = 41.868 GJ
• BRSR energy tables are usually in GJ; check units before comparing companies

Energy data in the BRSR

The BRSR splits energy into renewable and non-renewable sources, each divided into electricity, fuel and other sources, for the current and previous year. It also asks for energy intensity per rupee of turnover and, optionally, per unit of output. Total energy, the renewable share and energy intensity are BRSR Core indicators.

Ways to buy renewable power in India

• Captive and group captive projects: the company owns, or co-owns with others, a solar or wind project and uses its power
• Open access: buying renewable power directly from a generator through the grid. The Green Energy Open Access Rules of 2022 lowered the size threshold so that more consumers can do this.
• Green tariffs: paying the local distribution company a premium for renewable power
• Rooftop and on-site solar
• Renewable Energy Certificates (RECs): one REC represents one MWh of renewable electricity. RECs are traded on power exchanges and let a company claim renewable power separately from the physical electricity it uses. RECs cleared at about ₹350 to ₹370 each in August 2026.

Renewable consumption obligation (RCO)

Under the Energy Conservation Act, the Ministry of Power notified revised renewable consumption obligations on 27 September 2025, replacing an October 2023 notification. They apply to designated consumers, including electricity distribution companies, open access consumers and captive users.

• The total obligation rises from 29.91% of electricity consumption in FY 2024-25 to 43.33% by FY 2029-30.
• It has components for wind and hydro (from projects commissioned after 31 March 2024), distributed renewable energy (projects up to 10 MW, including rooftop solar) and other renewable energy.
• Consumers can comply by using renewable power, buying RECs or paying a buyout price set by CERC.
• Penalties apply under Section 26(3) of the Energy Conservation Act.

The older term, renewable purchase obligation (RPO), refers to obligations set by state electricity regulators under the Electricity Act.