Mumbai, Nov. 2 -- The Karnataka Electricity Regulatory Commission (KERC) has proposed a revised framework for renewable energy procurement, setting progressively higher Renewable Purchase Obligation (RPO) targets for obligated entities from financial year 2026-27 to 2029-30. The draft Karnataka Electricity Regulatory Commission (Procurement of Energy from Renewable Sources) Regulations, 2026, was published in the Karnataka State Gazette on October 22 and will replace the existing 2011 regulations and subsequent amendments.

The proposed rules seek to align Karnataka's requirements with central government guidelines issued under the Energy Conservation Act, 2001. The commission said differences between central and state frameworks had created challenges in compliance monitoring, implementation timelines and the use of Renewable Energy Certificates (RECs).

The total renewable energy obligation is proposed at 35.95% for 2026-27, rising to 38.81% in 2027-28, 41.36% in 2028-29 and 43.33% in 2029-30. Distribution licensees, open access consumers with contracted demand of at least 1 MW and consumers using grid-connected captive power plants with installed capacity of at least 1 MW will be classified as obligated entities.

The obligation will be divided into Wind Renewable Energy, Hydro Renewable Energy, Distributed Renewable Energy and Other Renewable Energy categories. Distributed renewable energy will cover projects below 10 MW, including rooftop solar installations, while the other category will include older wind and hydro projects, biomass pellets and charcoal produced from municipal solid waste. Wind and hydro obligations will generally have to be met through projects commissioned after March 31, 2024.

Entities will be able to comply through direct renewable electricity procurement, storage-linked renewable power, captive generation from plants of at least 250 kW, or the purchase and self-generation of RECs through mechanisms registered with the Central Electricity Regulatory Commission (CERC). A prescribed buyout price will also be permitted. The State Load Despatch Centre or another designated agency will monitor compliance, with annual data due by July 31 and compliance reports due to KERC by August 31. KERC has invited comments and objections within 30 days of Gazette publication before finalising the regulations.

Published by HT Digital Content Services with permission from Construction World.