What is the Renewable Consumption Obligation (RCO)?
The Renewable Consumption Obligation (RCO) is a regulatory mandate effective from April 1, 2024, established under the Energy Conservation (Amendment) Act, 2022. A Ministry of Power notification dated October 20, 2023 specified the minimum share of renewable energy consumption required by designated consumers, including electricity distribution licensees and open access or captive power users.
Who Needs to Comply?
The following entities are required to meet RCO targets each year:
Electricity Distribution Companies (DISCOMs): All DISCOMs must comply with the stipulated RCO targets.
Captive Power Producers and Captive Users: Industries or commercial establishments using captive power plants.
Open Access Consumers: Large industrial and commercial entities procuring power via open access.
Energy-Intensive Industries (Designated Consumers): This includes Cement, Fertilizers, Iron and Steel, Aluminium, Textile, Pulp and Paper, Chlor-Alkali, Railways, Petroleum Refineries, and Electricity Distribution Licensees.
RCO Targets for FY 2024–2030
The renewable energy consumption targets are as follows:
FY 2024-25: 29.91% FY 2025-26: 33.01% FY 2026-27: 35.95% FY 2027-28: 38.81% FY 2028-29: 41.36% FY 2029-30: 43.33%
These targets represent the minimum percentage of total energy consumption that must come from renewable sources.
Reporting Requirements and Penalties
Compliance reports must be submitted by September 30 following the end of the relevant financial year. Reports must be certified by the company or plant head and independently audited by a BEE-empanelled Accredited Energy Auditor (AEA).
Non-compliance or incorrect reporting attracts penalties under Section 26 of the Energy Conservation Act.
How EnerTsoL Helps
EnerTsoL supports designated consumers and DISCOMs through the full RCO compliance cycle — from obligation calculation and gap analysis to REC procurement strategy and audit coordination. Our team works with BEE-empanelled auditors and ensures your reporting meets the prescribed format and deadline.
If you are uncertain about your RCO obligations or need help with the compliance report, contact us at info@enertsol.com.