India has set itself an ambitious target to achieve 50% electricity generation capacity from non-fossil fuel-based energy resources by 2030 and to become a net zero economy by 2070. Renewable energy is central to these goals. To boost RE generation & consumption in the country, section 86(1)(e) of Electricity Act, 2003 mandates State Electricity Regulatory Commissions to specify a minimum share of total consumption from renewable sources of energy for their state. While this Renewable Purchase Obligation (RPO) framework has been one of the most important drivers for RE deployment in the country and led to impressive achievements in increasing RE capacity, the compliance and monitoring of RPO at the state level remains weak and needs further improvement. In spite of state RPO regulations and central guidelines, the monitoring and reporting of RPO compliance has been irregular, leading to a backlog of shortfall in meeting targets in most states. Improving transparency and accountability of obligated entities esp. regarding compliance will be crucial for the broader success of RPO. 

Apart from these targets themselves, the broader RPO framework, incl. its applicability, compliance, data reporting, incentives and penal structures also vary a lot across states. Sharing of regulatory practices across states can promote cross-learning and wider adoption of good practices. This discussion paper has done a critical and comprehensive review of the state RPO regulations and their compliance proceedings and makes some recommendations towards further improving the effectiveness of the RPO framework in States.

The discussion paper also includes potential standardised data reporting formats for various entities, as Annexures. These are also provided in a separate excel for ease of use.