Rajasthan Introduces New Regulations on Renewable Purchase Obligations and Energy Storage

Representational image. Credit: Canva

The Rajasthan Electricity Regulatory Commission (RERC) has issued a suo motu order announcing the finalization of new regulations concerning Renewable Purchase Obligations (RPOs) for obligated entities within the state. The decision follows the Ministry of Power’s recent establishment of RPO trajectories for various clean energy sources. Notably, the new regulations advocate for the mandatory inclusion of energy storage systems.


The regulations, named RERC (Renewable Purchase Obligation Regulations 2023), will come into effect on April 1, 2024, upon publication in the official gazette. They will be applicable to electricity distribution companies (discoms), open access consumers, and captive power plant (CCP) entities with an installed capacity of 1 Megawatt (MW) or more.

Under the new RPO targets, specific obligations have been set for wind energy and hydro energy, while solar and biomass fall under the broader category of ‘other RPO.’ The regulations stipulate that obligated entities must achieve a total RPO of 29.91 percent by 2024-25, with a further increase to 43.33 percent by the end of 2029-30.

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Additionally, the regulations introduce Energy Storage Obligations (ESO), with the RERC setting an energy-based storage requirement of 1.5 percent for 2024-25. This figure is expected to rise to 4 percent by 2029-30.

Until April 1, 2024, compliance with RPOs and associated rules will be governed by the RERC (RPO) Regulations 2007 and other relevant regulations.

Highlighting the state’s significant renewable energy potential, the RERC urged discoms to procure the maximum available power within Rajasthan to benefit from cost-effectiveness and scalability. The order emphasized that discoms should conduct procurement for RPO through competitive bidding, adhering to the guidelines issued by the Government of India under Section 63 of the Electricity Act, 2003, unless such guidelines are yet to be issued.

Overall, the new RPO regulations in Rajasthan aim to promote renewable energy adoption, including energy storage, and contribute to the state’s clean energy targets.

View the order document here:

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