TNERC Revises Renewable Energy Purchase Obligations

24 Oct 2025 CW Team

According to the latest notification, any shortfall from prescribed renewable targets will now be treated as non-compliance and subject to penalties in line with regulatory provisions.

The revised RPO framework establishes distinct targets for wind energy, hybrid renewable energy, distributed renewable energy (DRE), and other renewable categories — providing greater clarity for compliance tracking and auditing.

Under the new rules, Tamil Nadu’s wind energy targets have been fixed at 0.67 per cent for 2024–25 and 3.48 per cent for 2029–30. The Commission has also clarified that compliance may be achieved using energy from Wind Power Projects (WPPs) commissioned after 31 March 2024.

To provide operational flexibility, the regulation allows offsetting shortfalls across components:

Any deficit in wind energy during a given year may be compensated with excess hydro renewable energy, and vice versa.

Surplus generation in either wind or hydro components may also be credited towards the other renewable energy category for that compliance year.

The revised notification further mandates that the distributed renewable energy component must come exclusively from projects below 10 MW, including solar systems under net metering, gross metering, and other notified configurations.

RPO compliance will generally be measured in energy units (kWh). Where generation data is unavailable, consumption will be estimated using standard multipliers:

For designated consumers under the Energy Conservation Act, 2001, installed capacity (in kW) will be converted to energy using a multiplier of 4 kWh per kW per day.

For multiple prosumer installations within a distribution licensee’s area, the same 4 kWh/day multiplier will apply for RPO accounting in cases of missing generation data.

The TNERC stated that these measures aim to bring consistency, transparency, and flexibility to renewable energy accounting, ensuring steady progress toward Tamil Nadu’s long-term clean energy goals.

The Tamil Nadu Electricity Regulatory Commission (TNERC) has revised the state’s Renewable Energy Purchase Obligation (RPO), updating compliance norms and targets for captive users and other obligated entities. The new framework replaces previous notifications and introduces clearer, more structured requirements for renewable energy consumption and reporting. According to the latest notification, any shortfall from prescribed renewable targets will now be treated as non-compliance and subject to penalties in line with regulatory provisions. The revised RPO framework establishes distinct targets for wind energy, hybrid renewable energy, distributed renewable energy (DRE), and other renewable categories — providing greater clarity for compliance tracking and auditing. Under the new rules, Tamil Nadu’s wind energy targets have been fixed at 0.67 per cent for 2024–25 and 3.48 per cent for 2029–30. The Commission has also clarified that compliance may be achieved using energy from Wind Power Projects (WPPs) commissioned after 31 March 2024. To provide operational flexibility, the regulation allows offsetting shortfalls across components: Any deficit in wind energy during a given year may be compensated with excess hydro renewable energy, and vice versa. Surplus generation in either wind or hydro components may also be credited towards the other renewable energy category for that compliance year. The revised notification further mandates that the distributed renewable energy component must come exclusively from projects below 10 MW, including solar systems under net metering, gross metering, and other notified configurations. RPO compliance will generally be measured in energy units (kWh). Where generation data is unavailable, consumption will be estimated using standard multipliers: For designated consumers under the Energy Conservation Act, 2001, installed capacity (in kW) will be converted to energy using a multiplier of 4 kWh per kW per day. For multiple prosumer installations within a distribution licensee’s area, the same 4 kWh/day multiplier will apply for RPO accounting in cases of missing generation data. The TNERC stated that these measures aim to bring consistency, transparency, and flexibility to renewable energy accounting, ensuring steady progress toward Tamil Nadu’s long-term clean energy goals.

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