TAMIL NADU ELECTRICITY REGULATORY COMMISSION, CHENNAI-600 032.--Amendments to the Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligation) Regulations, 2025.

© [Regd. No. TN/CCN/467/2012-14. GOVERNMENT OF TAMIL NADU [R. Dis. No. 197/2009. 2025 [Price: Rs. 4.00 Paise. TAMIL NADU GOVERNMENT GAZETTE PUBLISHED BY AUTHORITY No. 38] CHENNAI, WEDNESDAY, SEPTEMBER 24, 2025 Purattasi 8, Visuvaavasu, Thiruvalluvar Aandu–2056 Part VI—Section 2 Notifications of interest to a section of the public issued by Heads of Departments, etc. NOTIFICATIONS BY HEADS OF DEPARTMENTS, ETC. CONTENTS Pages. TAMIL NADU ELECTRICITY REGULATORY COMMISSION, CHENNAI-600 032. Amendments to the Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligation) Regulations, 2025. .. .. .. .. .. .. 104-111 DTP—VI-2 (38) [103]104 TAMIL NADU GOVERNMENT GAZETTE [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. Year Wind Renewable Hydro Renewable Distributed Other Renewable Total Renewable No. Energy Energy Renewable Energy Energy Energy (1) (2) (3) (4) (5) (6) (7) 1 2024-25 0.67% 0.38% 1.50% 27.35% 29.91% 2 2025-26 1.45% 1.22% 2.10% 28.24% 33.01% 3 2026-27 1.97% 1.34% 2.70% 29.94% 35.95% 4 2027-28 2.45% 1.42% 3.30% 31.64% 38.81% 5 2028-29 2.95% 1.42% 3.90% 33.10% 41.36% 6 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. 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. c) 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. d) 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. 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:106 TAMIL NADU GOVERNMENT GAZETTE [Part VI—Sec. 2 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. 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.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.108 TAMIL NADU GOVERNMENT GAZETTE [Part VI—Sec. 2 Statements showing existing provisions and provisions as amended Amendment to TNERC (Renewable Energy Purchase Obligation) Regulations, 2023 Sl Existing Regulation Regulation as amended No. 1. 4. Renewable Purchase Obligation.- (1) xxx (1) xxx (2) 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 (3) Notwithstanding the above, the Commission may obligated entities / designated consumers as defined in either on its own motion or on the recommendation the Energy Conservation Act, 2001. Notwithstanding the of the State Agency or on guidelines issued by the above, the Commission may either on its own motion Ministry of Power or on receipt of an application or on the recommendation of the State Agency or on from the Distribution Licensee, revise the RPO receipt of an application from the Distribution Licensee, percentage specified in the Annexure-I of these revise the RPO/RCO percentage and the conditions as Regulations as deemed appropriate. 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. 2. 9. Consequence of default.- 9. Consequence of default.- (1) xxx (1) xxx (2) Where any obligated entities fails to comply with (2) Where any obligated entity as mandated in the the obligation to purchase the required percentage Regulation 3 of the Principal Regulations or designated of power from renewable energy sources or to consumer fail to comply with the obligation to purchase/ purchase the renewable energy certificates, it shall consume the required percentage of power from also be liable for penalty as may be decided by renewable energy sources or to purchase the renewable the Commission under Section 142 of the Act: 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 Provided that in case of bonafide difficulty in Conservation Act, 2001 as the case may be: complying with the renewable purchase obligation owing to non-availability of certificates, it is open for the obligated entity to represent to the Provided that in case of bonafide difficulty in complying Commission requesting permission to carry forward with the renewable purchase obligation owing to non- of compliance requirement to the next year for availability of certificates, it is open for the obligated entity consideration by the Commission on merit. to represent to the Commission requesting permission to carry forward of compliance requirement to the next year for consideration by the Commission on merit. 3. Annexure-I ( Minimum percentage for Renewable “Annexure-I (Minimum percentage for Renewable Purchase Obligation) Purchase Obligation) (1) Every obligated entity including distribution (1) Every obligated entity as mandated in the Regulation licensee, consumers owning captive power plant 3 shall purchase energy from renewable energy sources and open access consumers including short under the Renewable Purchase Obligation (RPO) term open access consumers in the state of and the designated consumers shall consume energy Tamil Nadu, shall purchase energy from renewable from renewable energy sources under the Renewable energy sources under the Renewable Purchase Consumption Obligation (RCO) as mandated under the Obligation (RPO) as under: - Energy Conservation Act, 2001as under: -Sep. 24, 2025] TAMIL NADU GOVERNMENT GAZETTE 109 Wind Other Total Wind Hydro Distributed Other Total Year RPO HPO RPO RPO Sl. Year Renew- Renew- Renew- Renew- Renew- No. able able able able able 2023-24 1.60% 0.66% 24.81% 27.08% Energy Energy Energy Energy Energy 2024-25 2.46% 1.08% 26.37% 29.91% (1) (2) (3) (4) (5) (6) (7) 1 2024-25 0.67% 0.38% 1.50% 27.35% 29.91% 2025-26 3.36% 1.48% 28.17% 33.01% 2 2025-26 1.45% 1.22% 2.10% 28.24% 33.01% 2026-27 4.29% 1.80% 29.86% 35.95% 3 2026-27 1.97% 1.34% 2.70% 29.94% 35.95% 2027-28 5.23% 2.15% 31.43% 38.81% 4 2027-28 2.45% 1.42% 3.30% 31.64% 38.81% 2028-29 6.16% 2.51% 32.69% 41.36% 5 2028-29 2.95% 1.42% 3.90% 33.10% 41.36% 2029-30 6.94% 2.82% 33.57% 43.33% 6 2029-30 3.48% 1.33% 4.50% 34.02% 43.33% (a) Wind RPO shall be met only by energy Note 1: The wind renewable energy component shall produced from Wind Power Projects be met by energy produced from Wind Power Projects (WPPs), commissioned after 31st March (WPPs) commissioned after the 31st March, 2024. 2022. Further, Wind RPO may also be met from the wind energy consumed Note 2: The hydro renewable energy component shall over and above 7% of the total energy be met only by energy produced from Hydro Power consumption, from WPPs commissioned Projects [including Pump Storage Projects (PSPs) and till 31.03.2022. Small Hydro Projects (SHPs)], commissioned after the (b) Hydro power Purchase Obligation 31st March, 2024: (HPO) are to be met from Large Hydro Power Projects (LHPs) or Small Hydro Provided that the hydro renewable energy component Power Projects (SHPs) including Pumped may also be met out of the free power being provided Storage Projects (PSPs), commissioned to the State/DISCOM from the Hydro Power Projects after 8th March 2019. commissioned after the 31st March, 2024: (c) Other RPO may be met by energy Provided further that the Hydro Renewable Energy produced from any RE power project not component may also be met from Hydro Power Projects mentioned in (a) and (b) above. located outside India as approved by the Central (2) From FY 2022-23 onwards, the energy from all Government on a case to case basis. Hydro Power Projects (HPPs) will be considered as part of RPO. The HPO trajectory, as has been Note 3: The distributed renewable energy component notified earlier will continue to prevail for Hydro shall be met only from the energy generated from Power Projects (including PSPs and Small Hydro renewable energy projects that are less than 10 MW Projects (SHPs)) commissioned after 8th March in size and shall include solar installations under all 2019. Energy from all other HPPs including free configurations such as net metering, gross metering, etc. power from HPPs commissioned before 8th March, and other RE sources as notified by the Commission 2019 will be considered as part of RPO under from time to time. category of ‘other RPO’. Provided that the compliance against distributed renewable (3) RPO shall be calculated in energy terms as energy shall ordinarily be considered in terms of energy a percentage of total consumption of electricity. (Kilowatt hour units): (4) HPO obligations may be met from the power procured from eligible Hydro Power Projects Provided further that in case the designated consumer (including PSPs and Small Hydro Projects (SHPs)) (as per the Energy Conservation Act, 2001) is unable commissioned on and after 8th March, 2019 to to provide generation data against distributed renewable 31st March, 2030. energy installations, the reported capacity shall be transformed into distributed renewable energy generation Large Hydro Power Projects (LHPs) means hydro in terms of energy by a multiplier of 4 units per kilowatt Power Projects with more than 25 MW installed per day (kWh/kW/day). capacity and Small Hydro Projects (SHPs) means hydro power projects of installed capacity up to 25 MW.110 TAMIL NADU GOVERNMENT GAZETTE [Part VI—Sec. 2 (5) HPO obligation of the State/Distribution Provided further that in case of distributed renewable Licensee may be met out of the free power energy installations installed by various prosumers in the being provided to the State from Hydro Power Distribution Licensee area and if the such Distribution Projects (including PSPs) and Small Hydro Projects Licensee is unable to assess the quantum of generation (SHPs), commissioned after 8th March, 2019 as due to non-availability of generation data, the generated per agreement at that point of time excluding the units shall be arrived in terms of energy by a multiplier contribution towards Local Area Development Fund of 4 units per day for RPO counting of the Distribution (LADF), if consumed within the State/ Distribution Licensee. Licensee. Free power (not that contributed for Note 4: The other renewable energy component may Local Area Development) shall be eligible for be met by energy produced from any renewable energy HPO benefit. power project other than specified in Note 1, 2 and 3 (6) In case, the free power mentioned above is and shall comprise energy from all WPPs and Hydro insufficient to meet the HPO obligations, then Power Projects [including Pump Storage Projects (PSPs) the State would have to buy the additional hydro and Small Hydro Projects (SHPs)], including free power, power to meet its HPO obligations or may have commissioned before the 1st April, 2024. to buy the corresponding amount of Renewable (a) Any shortfall in achievement of stipulated wind Energy Certificate corresponding to Hydro Power. renewable energy consumption in a particular year may (7) The above HPO trajectory shall be trued up be met with hydro renewable energy which is in excess on an annual basis depending on the revised of that energy component for that year and vice versa. commissioning schedule of Hydro projects. (b) The balance excess energy consumption under (8) Hydro power imported from outside India shall wind renewable energy or hydro renewable energy not be considered for meeting HPO. component in that year, may be considered as part of other renewable energy component. (9) Any shortfall remaining in achievement of ‘Other RPO’ category in a particular year can (c) Any excess energy consumption under Other be met with either the excess energy consumed renewable energy component in a particular year, may from WPPs, commissioned after 31st March 2022 be utilised to meet the shortfall in achievement of beyond ‘Wind RPO’ for that year or with excess stipulated Wind renewable energy or Hydro renewable energy consumed from eligible Hydro Power energy consumption. Projects (including PSPs and Small Hydro Projects (d) The designated consumers as per the Energy (SHPs)), commissioned after 8th March 2019 beyond Conservation Act, 2001 who are open access consumers ‘HPO’ for that year or partly from both. Further, or consumers with Captive Power Plants shall fulfil their any shortfall in achievement of ‘Wind RPO’ in a obligation as per the specified total renewable energy particular year can be met with excess energy target irrespective of the non-fossil fuel source. The consumed from Hydro Power Plants, which is in Bureau of Energy Efficiency / State Designated Agency excess of ‘HPO’ for that year and vice versa. designated by the State Government shall enforce the (10) The following percentage of total energy applicable provisions of Energy Conservation Act, 2001 consumed shall be renewable energy along with/ including minimum share of consumption of non-fossil through storage. sources (renewable energy) by the designated consumers. (e) The specified renewable energy consumption targets FY Storage (On energy basis) shall be met either directly or through Certificate in 2023-24 1.0% accordance with the Central Electricity Regulatory 2024-25 1.5% Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) 2025-26 2.0% Regulations, 2022 and amendments issued from time 2026-27 2.5% to time: 2027-28 3.0% Provided that any shortfall in specified renewable 2028-29 3.5% energy consumption targets shall be treated as non- compliance and consequence of default shall be as 2029-30 4.0% per the Regulation 9 of this Regulation.Sep. 24, 2025] TAMIL NADU GOVERNMENT GAZETTE 111 (11) The Energy Storage Obligation in para (10) (f) The State Agency (TN SLDC) / Tamil Nadu Green above shall be calculated in energy terms as a Energy Corporation (TNGEC) shall maintain data related percentage of total consumption of electricity and to compliance of renewable energy utilisation by the shall be treated as fulfilled only when at least 85% obligated entities and submit report to Commission of the total energy stored in the Energy Storage quarterly as per the format communicated by the System (ESS), on an annual basis, is procured Commission from time to time.” 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. (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