The Maharashtra Electricity Regulatory Commission (MERC) has issued an order addressing the compliance of Renewable Purchase Obligations (RPO) by Open Access consumers in Maharashtra for the period from FY 2014–15 to FY 2019–20. Under the RPO regulations of 2010 and 2016, distribution licensees, open access consumers, and captive users were required to procure a certain percentage of their power from renewable sources. The order details the verification process undertaken by the Commission to ensure that these obligations were met.
According to the regulations, obligated entities were required to meet both solar and non-solar RPO targets annually. However, due to challenges in implementation and a lack of proper monitoring mechanisms in the early years, the Commission initiated a verification process for these targets. MEDA, the nodal agency, submitted consolidated RPO compliance data, and the Commission issued notices to concerned entities seeking reconciliation of consumption and renewable procurement data.
In total, 90 open access consumers responded with submissions, and after public consultation and hearings, the Commission undertook a case-wise verification. Some companies, such as Amba River Coke Ltd. (a subsidiary of JSW Steel), were found to have RPO shortfalls due to a mismatch in energy data and failure to meet targets through renewable sources or certificates. The Commission instructed such entities to fulfill their cumulative shortfalls by FY 2025–26.
On the other hand, companies like JSW Steel Ltd., which operate their own cogeneration facilities, were exempted from RPO compliance under a 2021 APTEL judgment. The Commission clarified that JSW Steel’s exemption applied as long as energy from cogeneration exceeded RPO targets and highlighted that this matter is currently under review by the Supreme Court.
Other companies, including Pudumjee Paper Products Ltd., were found compliant and even had surplus renewable energy credits. The Commission allowed these entities to carry forward the surplus to future RPO years. Viraj Profiles Pvt. Ltd. cited suspension of REC trading and the COVID-19 pandemic as reasons for non-compliance and requested time until 2025 to meet the obligations. The Commission accepted such reasoning and extended the timeline to FY 2025–26 for all entities.
The order also instructed MEDA to work with distribution licensees to improve data collection and reporting. MEDA has been asked to provide a consolidated compliance report referencing an earlier 2018 order within three months and to conduct workshops to educate obligated entities about the online compliance portal. The Commission directed all entities with RPO shortfalls during FY 2014–15 to FY 2019–20 to comply by FY 2025–26 and allowed surplus RE or REC procurement to be carried forward. The case was officially closed with these directives.
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