The Maharashtra Electricity Regulatory Commission (MERC) has issued a draft policy announcing its renewable purchase obligation (RPO) from 2020 to 2025. The solar RPO targets mentioned in the policy draft will start at 4.5 per cent, going up to 13.5 per cent over the next five years. As per the draft, an obligated entity can use surplus solar energy up to 15 per cent of the total RPO targets to meet the shortfall in its non-solar target and vice versa. The obligated entities can also aim at achieving the total RPO targets notified by the central government. The distribution companies will be subjected to a reduction in the annual revenue requirement, while other obligated entities will be subjected to a penalty for the shortfall in the total RPO target for each year.
Maharashtra’s RPO target
| Year | Solar (%) | Non-solar (%) | Total (%) |
| 2020-21 | 4.5 | 11.5 | 16 |
| 2021-22 | 6 | 11.5 | 17.5 |
| 2022-23 | 8 | 11.5 | 19.5 |
| 2023-24 | 10.5 | 11.5 | 22 |
| 2024-25 | 13.5 | 11.5 | 25 |
Source: MERC