MERC Extends RPO Deadline to FY26 for Open Access Consumers

MERC Extends RPO Deadline to FY26 for Open Access Consumers

The Maharashtra Electricity Regulatory Commission (MERC) has mandated that all Open Access consumers in the state must meet their cumulative Renewable Purchase Obligation (RPO) shortfalls for the period 2014–2020 by the end of the 2025–26 financial year.

The directive, part of a final order, was issued by the Commission’s bench comprising Chairperson Sanjay Kumar and Members Anand M. Limaye and Surendra J. Biyani. The ruling follows a detailed review of compliance data submitted by the Maharashtra Energy Development Agency (MEDA) and 90 Open Access consumers.

MERC acknowledged widespread non-compliance with RPO targets during the review period, attributing some delays to the suspension of Renewable Energy Certificate (REC) trading and the COVID-19 pandemic. It granted a final extension for obligated entities to meet their targets via the procurement of renewable energy or RECs.

Key Decisions:

• Carry-Forward Allowed: Entities with surplus RE procurement up to FY20 may carry it forward to meet future obligations.
• Amba River Coke Ltd. (ARCL): Found to be a conventional power consumer via Open Access, not a captive power plant. Ordered to meet a shortfall of 70.852 million units (MU) by FY26.
• JSW Steel Ltd. (JSWSL): Exempted from RPO under a 2021 Appellate Tribunal for Electricity (APTEL) ruling, provided its co-generation exceeds presumptive RPO. However, JSWSL must reconcile its energy data with MEDA. The case of fossil fuel-based co-generation remains sub judice in the Supreme Court.
• Pudumjee Paper Products Ltd.: Verified to have met cumulative RPO targets and permitted to carry forward a surplus of 6.335 MU after adjusting the shortfall of its predecessor entity, Pudumjee Industries Ltd.
• Viraj Profiles Pvt. Ltd.: Granted an extension until FY26 due to force majeure conditions cited, including the REC market suspension and the pandemic.

Under MERC’s 2010 and 2016 RPO regulations, entities consuming fossil fuel-based power via Open Access—especially those with contract demand above 1 MVA (2010) or 5 MVA (2016)—are required to meet annual renewable procurement targets. Non-compliance may attract regulatory charges equivalent to the highest applicable tariff or a Commission-determined rate.

Directions to MEDA:

The regulator instructed MEDA to enhance data collection and submission of consolidated RPO compliance reports, improve usage of its online portal for RPO tracking, and conduct workshops to assist obligated entities with filing.