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Legal Central Ministry of Power Energy Conservation Act, 2001

Ministry of Power, issued notification on Renewable Consumption Obligation (RCO) for Designated Consumers under the Energy Conservation Act, 2001

27-Sep-2025 | No. 4301

The Ministry of Power, has specified the minimum share of electricity consumption from renewable energy (Wind, Hydro, Distributed Renewable Energy, and Other Renewable Energy) for designated consumers, including distribution licensees, open access consumers, and captive users for FY 2024-25 to FY 2029-30. For open access and captive users, this requirement applies to electricity sourced other than from distribution licensees. Exclusions include electricity from nuclear sources, certain fossil-based co-generation, and specified self-consumed residual energy.

Designated consumers may meet their Renewable Consumption Obligation (RCO) through direct consumption, energy storage systems, purchase or self-generation of Renewable Energy Certificates (RECs), or payment of the buyout price to the Central Energy Conservation Fund, with 75 percent of buyout proceeds transferred to State Energy Conservation Funds for renewable energy development.

All designated consumers are required to submit duly certified energy accounts for FY 2024-25 by 31st October 2025, and for subsequent years by 31st July, with compliance reports for any shortfalls through RECs or buyout submitted by 31st March/December of the following year. Distribution licensees must certify through the State Load Dispatch Center, and other designated consumers via Bureau-accredited energy auditors. Non-compliance, including shortfalls, non-submission, or incorrect reporting, may attract penalties under Section 26(3) of the Energy Conservation Act, 2001.

Please refer to the attached document for more information.

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