What is RPO?

Renewable Purchase Obligation (RPO) is a mandatory renewable energy quota imposed by CERC and State Electricity Regulatory Commissions (SERCs) on specified entities in India's power sector.

Who is obligated

• Distribution companies (DISCOMs)
• Open-access consumers (typically >1 MW demand)
• Captive power consumers

RPO trajectory (CERC)

• FY 2024–25: 29.91% total RPO
• FY 2029–30: 43.33% total RPO

Within the total, Solar RPO has a dedicated sub-target rising to ~29% by 2030.

How RPO is met

1. Own renewable generation or long-term PPA
2. Purchase of Renewable Energy Certificates (RECs) on IEX/PXIL
3. Green Term Ahead Market (GTAM) power contracts

Penalties for non-compliance

SERCs may impose penalties up to the forbearance price per shortfall kWh. Several states (Maharashtra, Gujarat, Rajasthan) have imposed penalties on DISCOMs historically.