Rajasthan Adopts RCO Framework, Replaces RPO To Strengthen Renewable Compliance

In a significant step toward strengthening renewable energy compliance, the Rajasthan Electricity Regulatory Commission (RERC) has issued a suo-motu order to adopt a new framework called Renewable Consumption Obligation (RCO). The order, dated March 19, 2026, follows a notification released by the Ministry of Power in September 2025, and signals a shift from the earlier Renewable Purchase Obligation (RPO) system to a broader and more integrated structure.

The Commission, chaired by Dr. Rajesh Sharma, along with members Hemant Kumar Jain and Vijay Pal Singh, explained that while the process of amending the state’s RPO Regulations of 2023 is currently underway, it may take time to complete. To avoid any regulatory gap during this transition, the Commission has exercised its powers under the Electricity Act, 2003, to immediately implement the national RCO framework.

With this move, all existing RPO targets are now merged into the new RCO targets starting from the financial year 2024-25. This means that distribution companies, open access consumers, and captive users across Rajasthan will now follow a single set of renewable energy compliance targets as defined by the Ministry of Power. There will be no separate or additional RPO requirements going forward. However, for any compliance issues or legal matters related to periods before 2024-25, the earlier RPO regulations will continue to apply.

The order places a strong focus on transparency and accurate reporting. All obligated entities must submit detailed data on their energy consumption and compliance status in formats specified by the Ministry of Power. For distribution companies, this data must be verified and certified by the State Load Dispatch Centre. Meanwhile, other designated consumers, including large industrial users, are required to get their data certified by accredited energy auditors empanelled with the Bureau of Energy Efficiency.

The Commission has also highlighted strict enforcement measures under the Energy Conservation Act, 2001. Any shortfall in meeting renewable energy targets, as well as delays or inaccuracies in data submission, will attract penalties as per the provisions of the Act. This underlines the seriousness of the new framework and the need for all stakeholders to ensure full compliance.

This interim order will remain in effect until the formal amendments to the RERC’s RPO Regulations are finalized and notified. In cases where there may be any ambiguity in the state-level order, the Commission has clarified that the original notification issued by the Ministry of Power will prevail.

Overall, the move is seen as an important step in aligning Rajasthan’s renewable energy policies with national standards, while ensuring continuity, clarity, and accountability during the transition period.