Madhya Pradesh Regulator Drops RPO Cases After Centre Merges Obligations Under New Renewable Framework

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has officially closed a large set of regulatory cases related to non-compliance with renewable energy obligations. The decision, issued through an order from Bhopal, marks the conclusion of 65 clubbed Suo Moto Petitions (SMPs) numbered 48 to 112 of 2025. These cases were initially initiated against several obligated entities that failed to meet their Renewable Purchase Obligation (RPO) as required under the Madhya Pradesh Electricity Regulatory Commission (Cogeneration and generation of electricity from Renewable Sources of Energy) Regulations, 2021, along with related directions issued by the Commission.

The Commission had begun the proceedings by registering these petitions and issuing show cause notices to the defaulting entities on August 4, 2025. These notices were issued under Section 142 of the Electricity Act, 2003, which allows for punitive action in cases of non-compliance. MPERC had also requested detailed RPO compliance data for the financial year 2024-25, setting a submission deadline of July 31, 2025. Hearings for these cases had been planned and rescheduled to take place between November 11 and November 13, 2025. However, before the hearings could proceed, a major policy change at the central level altered the course of the proceedings.

The turning point came with a notification issued by the Ministry of Power (MOP), Government of India, on September 27, 2025. This new notification replaced an earlier one dated October 20, 2023, and established a revised framework for the Renewable Consumption Obligation (RCO). The earlier 2023 notification had set out the minimum percentage of energy consumption that must come from non-fossil or renewable sources for the years FY 2024-25 to FY 2029-30. It applied to key categories of consumers, including distribution licensees, open access consumers, and captive power users. That rule, referred to as the Renewable Consumption Obligation, had been in effect since April 1, 2024.

In the updated notification of September 27, 2025, the Ministry of Power finalized the RCO targets and introduced a critical clause that changed how renewable energy obligations would be implemented across India. The ministry stated clearly that no additional Renewable Purchase Obligation would apply under the Electricity Act, 2003, and that all state-level RPOs would now be “subsumed” within the central Renewable Consumption Obligation framework. This meant that individual state commissions would no longer need to enforce separate RPO compliance.

Taking into account this new federal policy, MPERC concluded that its ongoing RPO-related cases had become redundant. The Commission, therefore, decided to close all 65 petitions and withdraw the show cause notices issued earlier to the obligated entities. With this decision, the Commission aligned itself with the updated national renewable energy policy framework. The official order confirming the closure of the proceedings was signed by Member Gajendra Tiwari and Acting Chairman Gopal Srivastava.