The Odisha Electricity Regulatory Commission (OERC) has pre-published the draft Odisha Electricity Regulatory Commission (Procurement of Energy from Renewable Energy Sources and its Compliance) Regulations, 2026, proposing new renewable energy procurement and compliance requirements across the state. The draft regulations have been issued under Section 181(3) of the Electricity Act, 2003, and are intended to replace the existing 2021 regulations.
The Commission has invited comments, suggestions and feedback from stakeholders, including distribution companies, renewable energy developers, open-access consumers and other interested parties. Stakeholders can submit their views until December 5, 2026, before the Commission finalizes the regulations and proceeds with their official publication.
Under the proposed framework, Renewable Purchase Obligations (RPO) and Energy Storage Obligations (ESO) will apply to distribution licensees, open-access consumers and owners of conventional captive power plants. The regulations establish a phased increase in renewable energy procurement targets to support Odisha’s clean energy transition and strengthen the integration of renewable power into the electricity system.
The total renewable energy obligation has been set at 35.95% for the financial year 2026-27. This target will gradually increase to 43.33% by FY 2029-30. The overall RPO will be divided into separate categories covering wind energy, hydro energy, distributed renewable energy (DRE) and other renewable energy sources. This category-based approach is intended to encourage procurement from different renewable energy technologies and diversify the state’s clean electricity mix.
The draft regulations also introduce specific Energy Storage Obligations for obligated entities. The ESO target will begin at 2.5% in FY 2026-27 and increase progressively to 4.0% by FY 2029-30. Entities will also be required to ensure that at least 85% of the energy stored annually originates from renewable energy sources. This requirement is expected to support greater deployment of energy storage systems and improve the ability of the power network to manage variable renewable generation.
The proposed regulations provide multiple options for obligated entities to meet their RPO requirements. These include directly consuming renewable electricity, using energy storage systems, purchasing or generating Renewable Energy Certificates (RECs), and participating through virtual power purchase agreements. Entities may also meet their obligations by paying the applicable buyout price determined by the Central Electricity Regulatory Commission (CERC).
The Odisha State Load Despatch Centre (SLDC) has been designated as the state agency responsible for monitoring and verifying compliance. It will collect information from obligated entities through standardized reporting formats, assess their performance and submit periodic compliance reports to OERC.
The draft further provides that cases involving non-compliance, obligation shortfalls or submission of incorrect information may result in recommendations for formal action under Section 142 of the Electricity Act, 2003.
Additionally, the regulations establish provisions covering grid connectivity, metering infrastructure, technical standards prescribed by the Central Electricity Authority and eligibility requirements under the REC mechanism.
Through the proposed regulations, OERC aims to strengthen renewable energy procurement, improve storage integration and establish a structured compliance framework for Odisha’s electricity sector.
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