KERC (Procurement of Energy from Renewable Sources) Regulations, 2026 — draft
Comments due (reported): 21 November 2026
Karnataka's regulator has proposed new renewable purchase obligation (RPO) rules that would raise the required renewable share from 35.95% in 2026-27 to 43.33% by 2029-30. The obligation would apply to discoms and to large open-access and captive consumers.
Why it matters. Higher year-by-year targets in a large RE state widen demand for renewable and storage-linked power, and bring big C&I users into compliance.
What changes
- Total RPO would rise from 35.95% (2026-27) to 38.81% (2027-28), 41.36% (2028-29) and 43.33% (2029-30).
- Split into wind, hydro, distributed renewable (projects under 10 MW, including rooftop solar) and other renewable categories; a distributed-RE shortfall cannot be offset by surplus elsewhere.
- Obligated entities: discoms, open-access consumers with contracted demand of 1 MW or more, and grid-connected captive users of 1 MW or more.
- Can be met through direct renewable purchase, storage-linked renewable power, captive plants of at least 250 kW, RECs or the CERC buyout price.
- SLDC would monitor compliance; entities report by 31 July each year and non-compliance can lead to Section 142 proceedings.
Who is affected
Karnataka discoms · Open-access consumers · Captive power users · RE developers · REC traders
Sources
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