New Delhi: The government has extended once again the deadline for submission of Renewable Consumption Obligation (RCO) compliance reports for FY2024–25 by two months, citing implementation challenges flagged by the industry. “In view of the challenges faced by obligated entities… it has been decided to extend the timeline… up to 31.05.2026,” the Ministry of Power said in an order dated April 16.
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The extension follows representations from Designated Consumers (DCs), routed through the Bureau of Energy Efficiency (BEE), seeking additional time to meet compliance and reporting requirements.
This is not the first relaxation. The compliance timeline for FY2024–25 — the first year of RCO implementation — has already been extended multiple times through 2025, reflecting teething issues in reporting formats, verification processes, and data readiness across sectors.
Earlier deadlines ranged from May 2025 for initial submissions to September and October 2025 for final reporting, before being pushed further as industries flagged operational and audit-related bottlenecks.
The latest extension effectively shifts the final compliance window closer to the end of FY2025–26.
The Renewable Consumption Obligation is a key policy instrument aimed at mandating a minimum share of Renewable Energy (RE) in the total electricity consumption for large users. Notified under the Energy Conservation Act, it applies to a broad set of “designated consumers,” including power distribution companies, open access users, and captive power plants.
Unlike the earlier Renewable Purchase Obligation (RPO), which targeted utilities, RCO expands compliance to energy-intensive industries such as steel, cement, aluminium and railways — making renewable adoption an economy-wide mandate.
Failure to meet RCO targets or submit compliance reports can attract penalties under the Act.
Entities can meet their RCO targets through multiple routes, including direct procurement of renewable power, captive generation, or purchase of Renewable Energy Certificates (RECs). The framework also requires detailed energy accounting, third-party verification by accredited auditors, and certification through state load dispatch centres in the case of distribution companies.
Shortfalls, if any, must be met within a specified timeline, failing which penalties may be imposed.
The RCO trajectory has been notified up to FY2029–30, forming a central pillar of India’s strategy to increase renewable energy consumption and reduce dependence on fossil fuels.
However, industry stakeholders have raised concerns over compliance complexity, cost implications, and the availability of renewable power, prompting the government to adopt a phased and flexible approach in the initial years.
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The latest extension signals that while the policy direction remains firm, enforcement is being calibrated to accommodate on-ground constraints during the transition phase.
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