India Mandates New Renewable Energy Consumption Standards Starting April 2024

Beginning April 1, 2024, India plans to impose new standards for distribution licensees to ensure that a specific amount of electricity consumption comes from renewable energy sources.


With more than 180 GW of installed renewable energy capacity, these standards aim to increase sustainable energy consumption across the country. Section 86 (1) (e) of the Act requires State Electricity Regulatory Commissions (SERCs) to specify Renewable Purchase Obligations (RPOs) for distribution utilities. 

The Ministry of Power delegated authority to determine the minimum share of non-fossil resource use by selected consumers. Goals for renewable energy sources are laid out in the notification, and incentives like 100% FDI and no ISTS charges are used to promote investment. Solar power, which is critical to mitigating climate change, underpins India's renewable energy plan, which aims to reach 500 GW by 2030 and achieve net zero emissions by 2070. Accelerated depreciation and EIA exemptions are among the policies being implemented to encourage green investment. 

State-specific data show rising renewable energy consumption objectives, indicating a phased shift. Gujarat, Rajasthan, and Maharashtra are among the top states that use wind, solar, and hydropower. Despite advances, regional inequality remains, necessitating targeted interventions for states like Uttar Pradesh and Bihar. States like Rajasthan and Gujarat are leaders in renewable energy generation, demonstrating progress towards national targets and carbon reduction goals.