In Short : By 2030, distribution firms and major industrial customers must source between 29.9% and 43.3% of their energy from renewable sources, according to a revised Renewable Consumption Obligation (RCO) framework published by India’s Ministry of Power. Although this represents a historic change from voluntary goals to legally obligatory responsibilities, the policy’s intended impact could be hampered by legal and enforcement flaws, particularly in relation to the buyout provision.
Aspiring Objectives with Defective Structures
Released in August 2025, the RCO draft establishes enforceable clean consumption goals for each year, moving away from Renewable Purchase Obligations (RPO) that prioritize procurement and toward a focus on real renewable energy use. It highlights India’s commitment to a more sustainable energy future by including growing demands across four segments: distributed renewables (such as rooftop solar), wind, hydro, and other non-fossil sources. However, since the CERC’s jurisdiction is derived from the Electricity Act and the RCO’s is from the Energy Conservation Act, the capacity to fulfill obligations through a buyout price set by the CERC creates constitutional questions. This discrepancy might make the buyout procedure less enforceable.
Complexity of Enforcement and Policy Risks
Coordination issues and uneven enforcement may result from the enforcement structure’s delegation of compliance control to a variety of organizations, including the Bureau of Energy Efficiency, state-designated bodies, and approved entities. Furthermore, the buyout option fundamentally weakens the urgency of the responsibility by establishing a permanent “pay-to-pollute” pathway without a sunset clause. There is a serious potential of similar enforcement failures under RCO, since historical data from RPO rollouts indicates that just six of the 24 examined states have pursued penalties in actual situations of deficit.
Implications for Clean Energy
It is evident from highlighting these structural flaws that India’s audacious RCO pledges need to be supported by strict legislative frameworks and rigorous implementation. The framework may not effectively encourage the use of renewable energy, impeding the nation’s energy transition and fair access to clean infrastructure, in the absence of a clearer permission for the buyout clause, strong enforcement measures, and specified data timelines.
