TNERC Drafts Revised RPO Regulations To Align With National Renewable Goals In Tamil Nadu

Introduction

The Tamil Nadu Electricity Regulatory Commission (TNERC) has proposed significant changes to its Renewable Energy Purchase Obligation rules, matching the revised Renewable Consumption Obligation targets established by the Ministry of Power in October 2023.1 This draft notice, which was under public review until June 5, 2025, shows a deliberate attempt to match state-level renewable energy policies with national energy transition targets. Starting from April 1, 2024, the proposed Tamil Nadu Electricity Regulatory Commission (Renewable Energy Purchase Obligation) (Amendment) Regulation, 2025 is expected to be in effect establishing mandatory renewable energy consumption targets for all obligated entities including distribution licensees, captive power plant owners, and open access consumers.

Explanation (Key Points)

• Starting with a total RPO target of 29.91% for 2024–25 and rising to 43.33% by 2029–30, the amended rules bring an ambitious progressive target structure. This all-encompassing framework divides renewable energy obligations into four separate components: Wind Renewable Energy, Hydro Renewable Energy, Distributed Renewable Energy, and Other Renewable Energy. Specific percentage requirements that increase yearly break out under these categories.
• Starting at 0.67% in 2024-25 and rising to 3.48% by 2029-30, the component on wind energy shows notable trajectory of increase. Similarly planned increases apply to other renewable energy sources, offering a clear road map for their deployment over Tamil Nadu. Although hydro energy must originate from new installations including small hydro and pump storage projects, the regulation sets strict criteria for compliance and mandates wind energy to be sourced only from projects commissioned after March 31, 2024.
• Smaller than 10 MW projects employing both net metering and gross metering configurations form the focus of requirements for distributed renewable energy. The rules have clauses allowing entities to offset shortfalls in wind or hydro energy consumption by surplus generating in other sectors. Moreover, excess capacity in the category “Other Renewable Energy” can offset hydro or wind category shortages.
• Under the Energy Conservation Act, 2001 consumers have to meet their renewable energy needs either by direct procurement or Renewable Energy Certificates; non-compliance is handled as regulatory default. Maintaining compliance databases and submitting quarterly reports to the Commission, the Tamil Nadu Green Energy Corporation ensures open monitoring and responsibility.

Conclusion

These suggested changes give Tamil Nadu a breakthrough approach to renewable energy policy, guiding a disciplined road towards major acceptance of clean energy. By using progressive annual targets with built-in flexibility mechanisms, TNERC shows commitment to help India’s national renewable energy aspirations and encourages new project development. The emphasis of the regulation on responsibility through quarterly reporting and unambiguous compliance criteria creates a strong framework for achieving major renewable energy transition. By this all-encompassing regulatory update, Tamil Nadu is positioned as a leader in state-level renewable energy policy implementation, acting as a model for other states aiming at similar energy transition targets.