MPERC Notifies Fifth Amendment, Sets Higher Renewable Purchase Targets Till 2030 In Madhya Pradesh

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has notified the fifth amendment to its 2021 renewable energy regulations, bringing new rules to promote clean power and improve compliance across the state. The amendment has come into effect from the date of its publication in the state gazette and will apply across Madhya Pradesh.

A major focus of the amendment is the revision of Renewable Purchase Obligations (RPO) and the introduction of stricter monitoring systems. These obligations apply to distribution companies, open access consumers, and captive users. The commission has set a clear trajectory for RPO targets from the financial year 2024-25 to 2029-30. As per the new plan, the total renewable energy obligation will increase gradually from 29.91% in 2024-25 to 43.33% by 2029-30.

The RPO targets are divided into four categories: wind energy, hydro energy, distributed renewable energy, and other renewable energy sources. Each category has specific conditions. Wind and hydro obligations must be met using projects commissioned after March 31, 2024. In the case of hydro, power from projects outside India and free power allocated to the state can also be counted.

Distributed renewable energy has been defined as projects with a capacity of up to 10 MW. This includes systems like rooftop solar, net metering, and behind-the-meter installations. The rules also allow flexibility between some categories. Wind, hydro, and other renewable energy sources are fungible, meaning surplus in one category can offset a shortfall in another. However, distributed renewable energy is treated differently. While its surplus can help meet other targets, any shortfall in this category cannot be adjusted using others.

Entities have multiple ways to meet their RPO targets. They can directly consume renewable power, purchase Renewable Energy Certificates (RECs), or pay a buyout price set by the Central Electricity Regulatory Commission. A key provision states that 75% of the funds collected through the buyout mechanism will be transferred to the State Energy Conservation Fund to support renewable energy and storage projects.

The amendment also gives a larger role to the Bureau of Energy Efficiency (BEE), which will now monitor compliance and submit regular reports to the commission. Obligated entities must submit certified energy data every year, with strict deadlines for reporting. Any failure to comply or provide accurate data will be treated seriously, and penalties may be imposed under the Energy Conservation Act, 2001.

Overall, the new amendment reflects a stronger push by the state to increase renewable energy use while ensuring better accountability and enforcement.