The Ministry of Power has released a revised draft notification on the Renewable Consumption Obligation (RCO) under the Energy Conservation Act, 2001. The draft supersedes the October 2023 notification and lays down the minimum share of electricity consumption from renewable sources for distribution licensees, open access consumers and captive users. The RCO, which is a specified minimum share of electrical energy consumption from renewable sources, has been structured with a phased increase from 2024-25 to 2029-30. The total RCO target is set to increase from 29.91 per cent in 2024-25 to 43.33 per cent by 2029-30. The obligations under wind and hydro will apply only to projects commissioned after March 31, 2024, while distributed renewable energy compliance will be met through projects below 10 MW, covering all forms of solar installations. The other renewable component includes wind and hydro projects commissioned before April 1, 2024, as well as co-firing of biomass and municipal solid waste. According to the draft, wind, hydro and other renewable components will be fungible, allowing shortfalls in one category to be offset by surpluses in another. Distributed renewable energy will be non-fungible for shortfalls, though its surplus may be used to meet other components. Electricity consumed from nuclear sources will be excluded from RCO obligations for all designated consumers
