MPERC Issues Draft Amendment To Align State Renewable Obligations With National Energy Consumption Rules In Madhya Pradesh

The Madhya Pradesh Electricity Regulatory Commission has released a draft notification proposing the Fifth Amendment to the state’s renewable energy regulations under the Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy) Regulations, 2021. The amendment, issued under the powers of the Electricity Act, 2003, is focused on updating the Renewable Purchase Obligations for different categories of consumers in the state. The Commission is mandated under Section 86(1)(e) of the Act to promote cogeneration and renewable energy. It must also specify a minimum percentage of total electricity consumption that must come from renewable sources. This responsibility is aligned with the national Tariff Policy of 2016, which directs state commissions to fix minimum renewable energy consumption based on trajectories issued by the Ministry of Power in consultation with the Ministry of New and Renewable Energy.

The main reason for issuing this amendment is the Ministry of Power’s notification dated September 27, 2025. The central notification set the minimum share of renewable energy consumption for designated consumers under the Energy Conservation Act, 2001. It also made clear that these consumers will not have to meet any separate Renewable Purchase Obligations under the Electricity Act, 2003. With this change, the Renewable Consumption Obligation targets defined by the Ministry of Power will now include all state-level RPO targets. Madhya Pradesh’s amendment aims to bring the state’s regulatory structure in line with this national framework and ensure consistency with the new methodology.

Under the draft amendment, Regulation 3.1 of the original regulations is replaced with a new table that sets the minimum renewable energy purchase requirements for distribution licensees, open access consumers, and captive users. The total Renewable Purchase Obligations start at 29.91 percent for the year 2024–25 and increase gradually to 43.33 percent by 2029–30. The RPO is divided into four categories: wind energy, hydro energy, distributed renewable energy, and other renewable energy. The obligations under the wind and hydro categories can only be met by projects commissioned after March 31, 2024. Distributed renewable energy has been treated differently. Any shortfall in this component cannot be compensated through the other components, but if there is surplus achievement, it can be used to offset shortfalls in the other categories.

The amendment allows obligated entities to meet their requirements using renewable electricity consumption, renewable energy certificates through purchase or self-generation, or by paying the buyout price set by the Central Electricity Regulatory Commission. The amendment also adds new definitions, such as Adjudicating Officer, Bureau of Energy Efficiency, and Distributed Renewable Energy. At the same time, some earlier clauses from the principal regulations are removed, including certain definitions and earlier reporting and compliance provisions.

One of the major changes introduced in the draft amendment is the new process for monitoring and reporting compliance. The Bureau of Energy Efficiency will now be responsible for monitoring RPO compliance and sending regular reports to the Commission. Obligated entities must submit reliable information through the BEE’s online portal, and this certification must come from a Bureau-accredited energy auditing firm. Failure to comply, including late submission or incorrect information, can lead to penalties imposed by an Adjudicating Officer under the Energy Conservation Act. Obligated entities must submit their certified energy accounts to BEE by July 31 each year and submit compliance reports after meeting any shortfall. For the year 2024–25, the compliance report must be submitted by March 31, 2026, and for subsequent years, the deadline will be December 31.