RCO (Renewable Consumption Obligation)

Who Needs to Comply with RCO (Renewable Consumption Obligation) in India?

The Renewable Consumption Obligation (RCO), effective from April 1, 2024, is part of the Energy Conservation (Amendment) Act, 2022. This was established by a Ministry of Power notification on October 20, 2023, specifying the minimum share of renewable energy consumption by designated consumers, including electricity distribution licensees and open access/captive power users. It mandates certain entities to meet renewable energy consumption targets each year.

🔹 RCO Compliance in India

Entities Required to Do RCO Compliance
  • Electricity Distribution Companies (DISCOMs): All DISCOMs must comply with RCO targets.
  • Captive Power Producers / Captive Users: Industries or commercial establishments using captive power plants.
  • Open Access Consumers: Large industrial/commercial entities procuring power via open access.
  • Energy-Intensive Industries (Designated Consumers):
    • Cement
    • Fertilizers
    • Iron & Steel
    • Aluminium
    • Textile
    • Pulp & Paper
    • Chlor-Alkali
    • Railways
    • Petroleum Refineries
    • Electricity Distribution Licensees
📅 RCO Targets (FY 2024–30)
Financial Year Renewable Energy Consumption Target
2024–2529.91%
2025–2633.01%
2026–2735.95%
2027–2838.81%
2028–2941.36%
2029–3043.33%
🔗 The links to access the documents received by us from the Bureau of Energy Efficiency are given below:
  1. Energy Conservation (Amendment) Act, 2022
  2. Gazette notification dt 20th Oct 2023 on Non fossil obligation
  3. Letter from JS MNRE dt 28th Nov’2023 on non-fossil obligations.
  4. Letter from Advisor MNRE dt 01st Feb 2024 on non-fossil obligations.
  5. BEE letter dt 3rd Feb 2025 on submission of progress towards RCO/RPO compliance.
  6. Clarification issued by Ministry of Power vide letter dated 16th April 2025 on capping of RCO for CPPs
  7. Letter to Electricity Distribution Licensee (DISCOMs) dt 14th May 2025 towards Compliance and Reporting of Renewable Consumption Obligations (RCO) for FY 2024–25.
  8. Letter to Designated consumers dt 14th May 2025 who are open access consumers or captive users towards Compliance and Reporting of Renewable Consumption Obligations (RCO) for FY 2024–25.
  9. RCO data Reporting Format for Electricity Distribution Licensee (DISCOMs).
  10. RCO data Reporting Format for Designated consumers who are open access consumers or captive users.
    a. RCO data Reporting Format for Designated consumers who are open access consumers or captive users_version_1
    b. RCO data Reporting Format for Designated consumers who are open access consumers or captive users_version_2
    b(i). Non-Fossil Cofiring and WHR Tool of RCO format for Designated consumers who are Captive Users_version_2a
  11. Scope of Work Empaneled agency Indicative structure of report for RCO Compliance
  12. BEE letter dt 30th May 2025 on Extension of Deadline for Submission of RCO Compliance for FY 2024-25
  13. Form C- Corporate Level Compliance.docx
  14. Form D- Certificate of verification by Agency.docx
  15. List of DCs for RCO_based on the threshold limit of energy consumption defined in EC Act 2001
📝 Reporting & Penalty
  • Compliance reports must be submitted by September 30 after this financial year.
  • Reports must be certified by the company/plant head and audited by a BEE-empaneled Accredited Energy Auditor (AEA).
  • Non-compliance or incorrect reporting attracts penalties under Section 26 of the Energy Conservation Act.
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