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Chhattisgarh Proposes New Renewable Energy Procurement Norms with Energy Storage Obligations

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has released a draft of the Renewable Purchase Obligation (RPO) and REC Framework Implementation (Second Amendment) Regulations, 2025. This proposal outlines significant updates to renewable energy procurement standards in the state, aiming to align with India's broader national goals, including net-zero emissions by 2070 and achieving 500 GW of non-fossil fuel energy capacity by 2030.

Key highlights of the draft include the introduction of new RPO categories, updated multi-year obligation trajectories, and—for the first time—a mandatory energy storage obligation (ESO) for all obligated entities, including distribution licensees, open access consumers, and captive users. Importantly, the draft mandates compliance from captive users operating fossil fuel-based cogeneration units, in line with national rulings and the Appellate Tribunal for Electricity’s 2024 judgment.

A new "distributed RPO" category has also been added, requiring fulfillment through renewable energy projects below 10 MW. This covers net metering, virtual metering, behind-the-meter setups, and other models approved by CSERC. In cases where metered data isn't available, generation will be calculated at a standard rate of 3.5 kWh/kW/day.

Revised trajectories indicate that wind and hydropower RPOs must come from new projects commissioned after March 31, 2024, while other RPOs can include older sources. For fossil fuel-based cogeneration units, a separate capped RPO will apply starting FY 2026.

Most notably, the Commission introduces an Energy Storage Obligation requiring a portion of consumed energy to be stored and discharged from energy storage systems, with 85% of stored energy mandated to originate from renewable sources. Discharged energy from such systems will count toward total RPO fulfillment, supporting grid flexibility and renewable integration.