India's Renewable Energy Mandate
India is one of the world's fastest-growing renewable energy markets, currently ranked third globally in installed renewable energy capacity. A key regulatory driver behind this growth is the Renewable Purchase Obligation (RPO), mandated under the Electricity Act 2003. RPO requires obligated entities to source a minimum percentage of their electricity from renewable energy resources.
What is RPO?
The Renewable Purchase Obligation requires certain entities — called obligated entities — to purchase a specified percentage of their total electricity consumption from renewable energy sources each year. Targets are set separately for Solar and Non-Solar renewable energy.
Who Are Obligated Entities?
Obligated entities under RPO include electricity distribution companies (DISCOMs), open access consumers, and captive power users. The specific targets vary by state and are set by the respective State Electricity Regulatory Commission (SERC).
The Challenge: Uneven Renewable Supply
Renewable power generation is not uniform across India. States with high renewable potential can generate surplus, while states with limited resources struggle to source enough renewable power. This geographic imbalance makes direct procurement of renewable energy difficult for many obligated entities.
The Role of Renewable Energy Certificates (RECs)
Renewable Energy Certificates were introduced to address this imbalance. RECs are tradeable certificates that represent the environmental attributes of power generated from a renewable source — but not the actual electricity itself. This separation allows obligated entities anywhere in India to meet their RPO targets without needing to physically procure renewable electricity.
RECs can be purchased on national power exchanges including the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). EnerTsoL, as a PXIL Registered Facilitator, can execute REC transactions on your behalf.
Scenarios to Achieve RPO Compliance
Obligated entities can fulfil their RPO through several routes: direct procurement of renewable electricity through PPAs or open access, captive renewable generation, or purchase of RECs on a power exchange. A combination of these approaches often delivers the best balance of cost and compliance certainty.
How EnerTsoL Helps
EnerTsoL helps companies calculate their RPO obligation, model the most cost-effective fulfilment strategy, and execute REC transactions at the right time on PXIL. We believe in a green and sustainable future — and we make compliance straightforward and commercially rational.
Contact us at info@enertsol.com to discuss your RPO position.