TAMIL NADU GOVERNMENT GAZETTE

104

[Part VI—Sec. 2

TAMIL NADU ELECTRICITY REGULATORY COMMISSION, CHENNAI-600 032.

Amendments to the Tamil Nadu Electricity Regulatory Commission

(Renewable Energy Purchase Obligation) Regulations, 2025.

(Notification No.TNERC/RPO/1-2/2025, dated 26-08-2025)

(Lr.No. TNERC/Legal/1371/D.No.1164/2025)

No. VI(2)/22/2025.

In exercise of the powers conferred by Section 181 read with Sections 61(h), 66 and 86(1)(e) of the Electricity

Act, 2003 (Central Act 36 of 2003) and all other powers enabling it in this behalf, the Tamil Nadu Electricity

Regulatory Commission hereby makes the following amendments to the Tamil Nadu Electricity Regulatory Commission

(Renewable Energy Purchase Obligation) Regulations, 2023 (herein referred to as the Principal Regulations) and the

draft of the same having been previously published as required by sub-section (3) of Section 181 of the said Act.

Amendments

1. (a) These Regulations may be called Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase

Obligation) (Amendment) Regulations, 2025;

(b) It shall come into force from April 01, 2024 as per the Notifications dated 20-10-2023 and 16-04-2025 of the

Ministry of Power, Government of India.

2. Amendment to the Regulation 4 of the Principal Regulations:

In the Principal Regulations, in Regulation 4, the sub-Regulation (3) shall be substituted as follows:

“The Renewable Consumption Obligation (RCO) and conditions notified by the Ministry of Power, Government of India

from time to time shall ordinarily be applicable to the obligated entities / designated consumers as defined in the Energy

Conservation Act, 2001 as amended from time to time. Notwithstanding the above, the Commission may either on its

own motion or on the recommendation of the State Agency or on receipt of an application from the Distribution Licensee,

revise the RPO/RCO percentage and the conditions as notified by the Ministry of Power, Government of India as deemed

appropriate considering the State specific issues, in which case the RPO/RCO prescribed by the Commission shall prevail

over the RCO prescribed by the Ministry of Power, Government of India.

3. Amendment to the Regulation 9 of the Principal Regulations:

In the Principal Regulations, in Regulation 9, the sub-Regulation (2) shall be substituted as follows:

“(2) Where any obligated entity as mandated in the Regulation 3 of the Principal Regulations or designated consumer

fail to comply with the obligation to purchase/consume the required percentage of power from renewable energy sources

or to purchase the renewable energy certificates, it shall be liable for penalty as may be decided by the Commission under

section 142 of the Electricity Act, 2003 or Section 26 of the Energy Conservation Act, 2001 as the case may be:

Provided that in case of bonafide difficulty in complying with the renewable purchase obligation owing to non-availability

of certificates, it is open for the obligated entity to represent to the Commission requesting permission to carry forward of

compliance requirement to the next year for consideration by the Commission on merit.”

4. Amendment to the Annexure-I of the Principal Regulations:

In the Principal Regulations, the Annexure -I shall be substituted as follows:

“Annexure-I (Minimum percentage for Renewable Purchase Obligation)

(1) Every obligated entity as mandated in the Regulation 3 shall purchase energy from renewable energy sources

under the Renewable Purchase Obligation (RPO) and the designated consumers shall consume energy from renewable

energy sources under the Renewable Consumption Obligation (RCO) as mandated under the Energy Conservation Act,

2001 as under:-

Sep. 24, 2025]

TAMIL NADU GOVERNMENT GAZETTE

105

Sl.

No.

Year

Wind Renewable

Energy

Hydro Renewable

Energy

Distributed

Renewable Energy

Other Renewable

Energy

Total Renewable

Energy

(1)

(2)

(3)

(4)

(5)

(6)

(7)

2024-25

0.67%

0.38%

1.50%

27.35%

29.91%

2025-26

1.45%

1.22%

2.10%

28.24%

33.01%

2026-27

1.97%

1.34%

2.70%

29.94%

35.95%

2027-28

2.45%

1.42%

3.30%

31.64%

38.81%

2028-29

2.95%

1.42%

3.90%

33.10%

41.36%

2029-30

3.48%

1.33%

4.50%

34.02%

43.33%

Note 1: The wind renewable energy component shall be met by energy produced from Wind Power Projects (WPPs)

commissioned after the 31st March, 2024.

Note 2: The hydro renewable energy component shall be met only by energy produced from Hydro Power Projects

[including Pump Storage Projects (PSPs) and Small Hydro Projects (SHPs)], commissioned after the 31st March, 2024:

Provided that the hydro renewable energy component may also be met out of the free power being provided to the

State/DISCOM from the Hydro Power Projects commissioned after the 31st March, 2024:

Provided further that the Hydro Renewable Energy component may also be met from Hydro Power Projects located

outside India as approved by the Central Government on a case to case basis.

Note 3: The distributed renewable energy component shall be met only from the energy generated from renewable

energy projects that are less than 10 MW in size and shall include solar installations under all configurations such as net

metering, gross metering, etc. and other RE sources as notified by the Commission from time to time.

Provided that the compliance against distributed renewable energy shall ordinarily be considered in terms of energy

(Kilowatt hour units):

Provided further that in case the designated consumer (as per the Energy Conservation Act, 2001) is unable to

provide generation data against distributed renewable energy installations, the reported capacity shall be transformed into

distributed renewable energy generation in terms of energy by a multiplier of 4 units per kilowatt per day (kWh/kW/day).

Provided further that in case of distributed renewable energy installations installed by various prosumers in the

Distribution Licensee area and if the such Distribution Licensee is unable to assess the quantum of generation due to

non-availability of generation data, the generated units shall be arrived in terms of energy by a multiplier of 4 units per day

for RPO counting of the Distribution Licensee.

Note 4: The other renewable energy component may be met by energy produced from any renewable energy power

project other than specified in Note 1, 2 and 3 and shall comprise energy from all WPPs and Hydro Power Projects

[including Pump Storage Projects (PSPs) and Small Hydro Projects (SHPs)], including free power, commissioned before

the 1st April, 2024.

Any shortfall in achievement of stipulated wind renewable energy consumption in a particular year may be met

with hydro renewable energy which is in excess of that energy component for that year and vice versa.

The balance excess energy consumption under wind renewable energy or hydro renewable energy component

in that year, may be considered as part of other renewable energy component.

Any excess energy consumption under Other renewable energy component in a particular year, may be utilised to

meet the shortfall in achievement of stipulated Wind renewable energy or Hydro renewable energy consumption.

The designated consumers as per the Energy Conservation Act, 2001 who are open access consumers or

consumers with Captive Power Plants shall fulfill their obligation as per the specified total renewable energy

target irrespective of the non-fossil fuel source. The Bureau of Energy Efficiency / State Designated Agency

designated by the State Government shall enforce the applicable provisions of Energy Conservation Act, 2001

including minimum share of consumption of non-fossil sources (renewable energy) by the designated consumers.

The specified renewable energy consumption targets shall be met either directly or through Certificate in

accordance with the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy

Certificates for Renewable Energy Generation) Regulations, 2022 and amendments issued from time to time:

Sep. 24, 2025]

TAMIL NADU GOVERNMENT GAZETTE

107

Explanatory Statement

1. The Commission has notified Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase

Obligation) Regulations, 2023 vide Notification No. TNERC/RPO/01/2023, dated 27-09-2023, which came into effect from

15-11-2023. The RPO Trajectory in the TNERC RPO Regulations, 2023 was fixed based on the MoP RPO Trajectory

notification dated 22-07-2022. The earlier TNERC (Renewable Energy Purchase Obligation) Regulations, 2010 was

repealed.

2. In the meantime, the MoP vide notification dated 20-10-2023 has notified Renewable Consumption Obligation

applicable to the Designated Consumers (including Distribution Licensee) under clauses (n) and (x) of Section 14 of the

Energy Conservation Act, 2001 (52 of 2001). The notification also prescribes that it shall come into force on the 1st day

of April, 2024 and till such time, the RPO trajectory specified in paragraphs 5 to 14 vide MoP Order No. 9/13/2021-RCM,

dated 22-07-2022 read with Corrigendum, dated 19-09-2022 shall remain in force.

3. Further, the MoP vide F.No. 09/01/2025-RCM, dated 16-04-2025 has clarified that after notification of RCO dated

20-10-2023 under Energy Conservation Act, 2001, all the earlier notifications related to RPO issued by MoP including

clarification vide order No. 30/04/2018-R&R dated 01-10-2019 related to captive users have been superseded and are

not applicable w.e.f 01-04-2024. The MoP has clarified that all the designated consumers, including Captive users, are

required to comply with the specified RCO targets under the said notification and any deviation from such targets would

be considered as non-compliance and would be liable for action as per provisions under Energy Conservation Act, 2001,

as amended from time to time.

4. It is also to be noted that the Central Electricity Authority in their Reports on Resource Adequacy Plan for various

States including Tamil Nadu has considered only RCO trajectory notified by MoP in their order dated 20-10-2023 to fulfill

the RPO by the States.

5. In view of the above, this amendment is issued to the TNERC (Renewable Energy Purchase Obligation) Regulations,

2023 after due consideration of the RCO trajectory notified by the MoP vide order dated 20-10-2023 and consultation of

the stakeholders.

(By Order of the Commission)

Chennai-600 032,

S. JOHN SUNDARARAJ,

4th September 2025.

Secretary (In-charge),

Tamil Nadu Electricity Regulatory Commission.

TAMIL NADU GOVERNMENT GAZETTE

108

[Part VI—Sec. 2

Statements showing existing provisions and provisions as amended

Amendment to TNERC (Renewable Energy Purchase Obligation) Regulations, 2023

No.

Existing Regulation

Regulation as amended

4. Renewable Purchase Obligation.-

(1) xxx

(2) xxx

(3) Notwithstanding the above, the Commission may

either on its own motion or on the recommendation

of the State Agency or on guidelines issued by the

Ministry of Power or on receipt of an application

from the Distribution Licensee, revise the RPO

percentage specified in the Annexure-I of these

Regulations as deemed appropriate.

(1) xxx

(2) xxx

(3) The Renewable Consumption Obligation and conditions

notified by the Ministry of Power, Government of India

from time to time shall ordinarily be applicable to the

obligated entities / designated consumers as defined in

the Energy Conservation Act, 2001. Notwithstanding the

above, the Commission may either on its own motion

or on the recommendation of the State Agency or on

receipt of an application from the Distribution Licensee,

revise the RPO/RCO percentage and the conditions as

notified by the Ministry of Power, Government of India

as deemed appropriate considering the State specific

issues, in which case the RPO/RCO prescribed by the

Commission shall prevail over the RCO prescribed by

the Ministry of Power, Government of India.

9. Consequence of default.-

(1) xxx

(2) Where any obligated entities fails to comply with

the obligation to purchase the required percentage

of power from renewable energy sources or to

purchase the renewable energy certificates, it shall

also be liable for penalty as may be decided by

the Commission under Section 142 of the Act:

Provided that in case of bonafide difficulty in

complying with the renewable purchase obligation

owing to non-availability of certificates, it is

open for the obligated entity to represent to the

Commission requesting permission to carry forward

of compliance requirement to the next year for

consideration by the Commission on merit.

9. Consequence of default.-

(1) xxx

(2) Where any obligated entity as mandated in the

Regulation 3 of the Principal Regulations or designated

consumer fail to comply with the obligation to purchase/

consume the required percentage of power from

renewable energy sources or to purchase the renewable

energy certificates, it shall be liable for penalty as may

be decided by the Commission under Section 142 of

the Electricity Act, 2003 or Section 26 of the Energy

Conservation Act, 2001 as the case may be:

Provided that in case of bonafide difficulty in complying

with the renewable purchase obligation owing to non-

availability of certificates, it is open for the obligated entity

to represent to the Commission requesting permission

to carry forward of compliance requirement to the next

year for consideration by the Commission on merit.

Annexure-I ( Minimum percentage for Renewable

Purchase Obligation)

(1) Every obligated entity including distribution

licensee, consumers owning captive power plant

and open access consumers including short

term open access consumers in the state of

Tamil Nadu, shall purchase energy from renewable

energy sources under the Renewable Purchase

Obligation (RPO) as under: -

“Annexure-I (Minimum percentage for Renewable

Purchase Obligation)

(1) Every obligated entity as mandated in the Regulation

3 shall purchase energy from renewable energy sources

under the Renewable Purchase Obligation (RPO)

and the designated consumers shall consume energy

from renewable energy sources under the Renewable

Consumption Obligation (RCO) as mandated under the

Energy Conservation Act, 2001as under: -

Sep. 24, 2025]

TAMIL NADU GOVERNMENT GAZETTE

109

Year

Wind

RPO

HPO

Other

RPO

Total

RPO

2023-24

1.60%

0.66%

24.81%

27.08%

2024-25

2.46%

1.08%

26.37%

29.91%

2025-26

3.36%

1.48%

28.17%

33.01%

2026-27

4.29%

1.80%

29.86%

35.95%

2027-28

5.23%

2.15%

31.43%

38.81%

2028-29

6.16%

2.51%

32.69%

41.36%

2029-30

6.94%

2.82%

33.57%

43.33%

(a) Wind RPO shall be met only by energy

produced from Wind Power Projects

(WPPs), commissioned after 31st March

2022. Further, Wind RPO may also be

met from the wind energy consumed

over and above 7% of the total energy

consumption, from WPPs commissioned

till 31.03.2022.

(b) Hydro power Purchase Obligation

(HPO) are to be met from Large Hydro

Power Projects (LHPs) or Small Hydro

Power Projects (SHPs) including Pumped

Storage Projects (PSPs), commissioned

after 8th March 2019.

produced from any RE power project not

mentioned in (a) and (b) above.

(2) From FY 2022-23 onwards, the energy from all

Hydro Power Projects (HPPs) will be considered

as part of RPO. The HPO trajectory, as has been

notified earlier will continue to prevail for Hydro

Power Projects (including PSPs and Small Hydro

Projects (SHPs)) commissioned after 8th March

2019. Energy from all other HPPs including free

power from HPPs commissioned before 8th March,

2019 will be considered as part of RPO under

category of ‘other RPO’.

(3) RPO shall be calculated in energy terms as

a percentage of total consumption of electricity.

(4) HPO obligations may be met from the power

procured from eligible Hydro Power Projects

(including PSPs and Small Hydro Projects (SHPs))

commissioned on and after 8th March, 2019 to

31st March, 2030.

Large Hydro Power Projects (LHPs) means hydro

Power Projects with more than 25 MW installed

capacity and Small Hydro Projects (SHPs) means

hydro power projects of installed capacity up to

25 MW.

Sl.

No.

Year

Wind

Renew

able

Energy

Hydro

Renew

able

Energy

Distributed

Renew

able

Energy

Other

Renew

able

Energy

Total

Renew

able

Energy

(1)

(2)

(3)

(4)

(5)

(6)

(7)

2024-25

0.67%

0.38%

1.50%

27.35%

29.91%

2025-26

1.45%

1.22%

2.10%

28.24%

33.01%

2026-27

1.97%

1.34%

2.70%

29.94%

35.95%

2027-28

2.45%

1.42%

3.30%

31.64%

38.81%

2028-29

2.95%

1.42%

3.90%

33.10%

41.36%

2029-30

3.48%

1.33%

4.50%

34.02%

43.33%

Note 1: The wind renewable energy component shall

be met by energy produced from Wind Power Projects

(WPPs) commissioned after the 31st March, 2024.

Note 2: The hydro renewable energy component shall

be met only by energy produced from Hydro Power

Projects [including Pump Storage Projects (PSPs) and

Small Hydro Projects (SHPs)], commissioned after the

31st March, 2024:

Provided that the hydro renewable energy component

may also be met out of the free power being provided

to the State/DISCOM from the Hydro Power Projects

commissioned after the 31st March, 2024:

Provided further that the Hydro Renewable Energy

component may also be met from Hydro Power Projects

located outside India as approved by the Central

Government on a case to case basis.

Note 3: The distributed renewable energy component

shall be met only from the energy generated from

renewable energy projects that are less than 10 MW

in size and shall include solar installations under all

configurations such as net metering, gross metering, etc.

and other RE sources as notified by the Commission

from time to time.

Provided that the compliance against distributed renewable

energy shall ordinarily be considered in terms of energy

(Kilowatt hour units):

Provided further that in case the designated consumer

(as per the Energy Conservation Act, 2001) is unable

to provide generation data against distributed renewable

energy installations, the reported capacity shall be

transformed into distributed renewable energy generation

in terms of energy by a multiplier of 4 units per kilowatt

per day (kWh/kW/day).

TAMIL NADU GOVERNMENT GAZETTE

110

[Part VI—Sec. 2

(5) HPO obligation of the State/Distribution

Licensee may be met out of the free power

being provided to the State from Hydro Power

Projects (including PSPs) and Small Hydro Projects

(SHPs), commissioned after 8th March, 2019 as

per agreement at that point of time excluding the

contribution towards Local Area Development Fund

(LADF), if consumed within the State/ Distribution

Licensee. Free power (not that contributed for

Local Area Development) shall be eligible for

HPO benefit.

(6) In case, the free power mentioned above is

insufficient to meet the HPO obligations, then

the State would have to buy the additional hydro

power to meet its HPO obligations or may have

to buy the corresponding amount of Renewable

Energy Certificate corresponding to Hydro Power.

(7) The above HPO trajectory shall be trued up

on an annual basis depending on the revised

commissioning schedule of Hydro projects.

(8) Hydro power imported from outside India shall

not be considered for meeting HPO.

(9) Any shortfall remaining in achievement of

‘Other RPO’ category in a particular year can

be met with either the excess energy consumed

from WPPs, commissioned after 31st March 2022

beyond ‘Wind RPO’ for that year or with excess

energy consumed from eligible Hydro Power

Projects (including PSPs and Small Hydro Projects

(SHPs)), commissioned after 8th March 2019 beyond

‘HPO’ for that year or partly from both. Further,

any shortfall in achievement of ‘Wind RPO’ in a

particular year can be met with excess energy

consumed from Hydro Power Plants, which is in

excess of ‘HPO’ for that year and vice versa.

(10) The following percentage of total energy

consumed shall be renewable energy along with/

through storage.

Storage (On energy basis)

2023-24

1.0%

2024-25

1.5%

2025-26

2.0%

2026-27

2.5%

2027-28

3.0%

2028-29

3.5%

2029-30

4.0%

Provided further that in case of distributed renewable

energy installations installed by various prosumers in the

Distribution Licensee area and if the such Distribution

Licensee is unable to assess the quantum of generation

due to non-availability of generation data, the generated

units shall be arrived in terms of energy by a multiplier

of 4 units per day for RPO counting of the Distribution

Licensee.

Note 4: The other renewable energy component may

be met by energy produced from any renewable energy

power project other than specified in Note 1, 2 and 3

and shall comprise energy from all WPPs and Hydro

Power Projects [including Pump Storage Projects (PSPs)

and Small Hydro Projects (SHPs)], including free power,

commissioned before the 1st April, 2024.

(a) Any shortfall in achievement of stipulated wind

renewable energy consumption in a particular year may

be met with hydro renewable energy which is in excess

of that energy component for that year and vice versa.

(b) The balance excess energy consumption under

wind renewable energy or hydro renewable energy

component in that year, may be considered as part

of other renewable energy component.

renewable energy component in a particular year, may

be utilised to meet the shortfall in achievement of

stipulated Wind renewable energy or Hydro renewable

energy consumption.

(d) The designated consumers as per the Energy

Conservation Act, 2001 who are open access consumers

or consumers with Captive Power Plants shall fulfil their

obligation as per the specified total renewable energy

target irrespective of the non-fossil fuel source. The

Bureau of Energy Efficiency / State Designated Agency

designated by the State Government shall enforce the

applicable provisions of Energy Conservation Act, 2001

including minimum share of consumption of non-fossil

sources (renewable energy) by the designated consumers.

(e) The specified renewable energy consumption targets

shall be met either directly or through Certificate in

accordance with the Central Electricity Regulatory

Commission (Terms and Conditions for Renewable

Energy Certificates for Renewable Energy Generation)

Regulations, 2022 and amendments issued from time

to time:

Provided that any shortfall in specified renewable

energy consumption targets shall be treated as non-

compliance and consequence of default shall be as

per the Regulation 9 of this Regulation.

Sep. 24, 2025]

TAMIL NADU GOVERNMENT GAZETTE

111

(11) The Energy Storage Obligation in para (10)

above shall be calculated in energy terms as a

percentage of total consumption of electricity and

shall be treated as fulfilled only when at least 85%

of the total energy stored in the Energy Storage

System (ESS), on an annual basis, is procured

from renewable energy sources.

(12) The Energy Storage Obligation to the extent

of energy stored from RE sources shall be

considered as a part of fulfillment of the total

RPO as mentioned in para 1 above.

(13) Minimum percentage for Renewable Power

Purchase Obligation for each category mentioned

in para 1 and para 10 of this Schedule shall have

to be met separately subject to the conditions

specified in the Regulations and this Schedule.

(14) The provisions contained in this Annexure

shall, unless revised earlier by the Ministry of

Power, Government of India, be applicable in

respect of the period up to 31st March, 2030.

(f) The State Agency (TN SLDC) / Tamil Nadu Green

Energy Corporation (TNGEC) shall maintain data related

to compliance of renewable energy utilisation by the

obligated entities and submit report to Commission

quarterly as per the format communicated by the

Commission from time to time.”

(By Order of the Commission)

Chennai-600 032,

S. JOHN SUNDARARAJ,

4th September 2025.

Secretary (In-charge),

Tamil Nadu Electricity Regulatory Commission.

PRINTED AND PUBLISHED BY THE COMMISSIONER OF STATIONERY AND PRINTING, CHENNAI

ON BEHALF OF THE GOVERNMENT OF TAMIL NADU