Karnataka Proposes Raising RPO Target to 43.33 Percent by FY30
Karnataka Electricity Regulatory Commission has proposed raising Karnataka’s total Renewable Purchase Obligations from 35.95 percent in FY27 to 43.33 percent by FY30. It includes 3.48 percent from wind and 1.33 percent for hydro projects commissioned after March 31, 2024, 4.50 percent from distributed renewables and 34.02 percent for other renewables.
October 29, 2026. By Mrinmoy Dey
The draft regulations propose repealing the existing 2011 regulations to align Karnataka’s renewable energy procurement framework with recent central government requirements and revised methodologies for Renewable Consumption Obligations (RCO).
The proposed regulations apply to distribution licensees, open-access consumers with a contract demand of 1 MW and above, and grid-connected captive power plants with a capacity of 1 MW and above. The total renewable energy obligation would increase progressively over four financial years.
Under the draft, the total renewable energy obligation is proposed at 35.95 percent for FY27, 38.81 percent for FY28, 41.36 percent for FY29 and 43.33 percent for FY30.
The proposed obligation is divided into four categories: wind renewable energy, hydro renewable energy, distributed renewable energy (DRE) and other renewable energy.
For FY30, the proposed targets comprise 3.48 percent from wind energy projects commissioned after March 31, 2024, 1.33 percent from hydropower projects commissioned after March 31, 2024, 4.50 percent for distributed renewable energy and 34.02 percent for other renewable energy. The wind and hydro obligations would apply to projects commissioned after March 31, 2024.
The distributed renewable energy category covers installations below 10 MW, including rooftop solar and systems operating under net metering, gross metering, virtual net metering and group net metering arrangements. The draft specifies that shortfalls in the DRE obligation cannot be compensated for through other renewable energy sources. Where generation data is unavailable, energy generation would be calculated using a multiplier of 3.5 units per kilowatt per day.
The Other RE component can be met by procuring electricity from renewable energy projects outside the specified Wind, Hydro and Distributed RE categories. This includes wind and hydropower projects commissioned before April 1, 2024, biomass pellet co-firing and charcoal produced from municipal solid waste.
Under the proposed compliance framework, obligated entities can meet their targets through direct consumption of renewable energy from captive or open-access sources, power market transactions, energy storage systems, or the purchase and redemption of Renewable Energy Certificates (RECs) in accordance with applicable Central Electricity Regulatory Commission (CERC) guidelines. The draft also provides for a buyout price mechanism, with proceeds to be utilised as directed by the Ministry of Power.
The State Load Despatch Centre (SLDC) or another designated state agency would monitor compliance. Obligated entities would be required to submit annual electricity consumption and renewable energy data by July 31 of the following year.
The proposed regulations seek to streamline renewable energy compliance, improve monitoring and establish a progressively increasing framework for renewable energy consumption in Karnataka through FY30.
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