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Ministry of Power Proposes Amendments to Renewable Energy Consumption Regulations

The Ministry of Power has introduced proposed revisions to the regulatory framework governing renewable energy consumption obligations for distribution licensees, open access consumers, and captive users. These amendments, aimed at strengthening compliance, will be monitored by the Bureau of Energy Efficiency (BEE), which will submit periodic reports to the government.

Interested stakeholders can submit their feedback by April 18, 2025.

Key Amendments:

• Flexible Compliance for Wind & Hydro Energy
  • Wind energy shortfalls can now be compensated with surplus hydro energy, and vice versa.
  • If required, other renewable sources can also be used to cover wind or hydro obligations.
• Use of Surplus Distributed Renewable Energy
  • Excess energy from small-scale renewable projects (<10>

Renewable Energy Obligations for Open Access & Captive Users:

• Open Access & Captive Users (Designated Consumers)
  • These consumers can meet their obligations using any renewable energy source.
• Captive Users
  • Renewable targets include self-consumed electricity but exclude auxiliary power consumption.
  • Fossil-based waste heat recovery power does not qualify, except in cases where a Waste Heat Recovery Steam Generator (WHRSG) is part of a combined cycle gas-based power plant.

Compliance Mechanisms:

Entities can fulfill their renewable energy obligations through:

• Direct consumption of non-fossil electricity
• Energy storage solutions
• Renewable Energy Certificates (RECs)
• Buyout payments, as determined by the Central Electricity Regulatory Commission (CERC), with funds allocated to the Central Energy Conservation Fund for renewable energy expansion

Non-Compliance & Penalties:

• Non-compliance will be penalized under Section 26(3) of the Energy Conservation Act.
• Penalties will apply to entities failing to meet obligations or submitting incorrect information.
• Companies with multiple units under a common holding structure will have compliance assessed at the holding company level.

This amendment enhances flexibility while strengthening accountability, reinforcing India’s commitment to a sustainable energy future.

Deadline for Public Comments: April 18, 2025