The Odisha Electricity Regulatory Commission (OERC) on April 10, 2026, issued the Draft Odisha Electricity Regulatory Commission (Renewable Consumption Obligation, Distributed Renewable Energy Sources and Renewable Energy Linked Concepts) Regulations, 2026.
The following has been stated:
• The regulations introduce a comprehensive framework for Renewable Consumption Obligation (RCO) and Distributed Renewable Energy Systems (DRES) in the state. They mandate that distribution licensees, captive users, and open access consumers shall meet increasing yearly targets of renewable energy consumption (reaching over 43% by 2029–30), with separate components for wind, hydro, distributed RE, and other renewable sources. Compliance can be achieved through direct consumption, renewable energy certificates (RECs), green energy purchase, or energy storage systems, while non-compliance may attract penalties under the Electricity Act, 2003.
• The regulations promote distributed renewable energy (up to 10 MW) through multiple mechanisms such as net metering, net billing, gross metering, group net metering, virtual net metering, and behind-the-meter systems, with defined capacity limits, billing rules, and settlement procedures. Consumers installing DRES above 5 kW are required to integrate battery energy storage systems (BESS), and advanced metering infrastructure is mandated for accurate energy accounting.
• They also introduce modern concepts like peer-to-peer (P2P) energy trading, virtual power plants (VPPs), and vehicle-to-grid (V2G) integration to enhance grid flexibility and enable decentralized energy markets. Technical standards, grid connectivity norms, and safety requirements are prescribed, along with provisions for subsidies, feed-in tariffs, and exemption from certain charges for DRES installations. Overall, the framework aims to accelerate renewable adoption, improve grid efficiency, and support energy transition in Odisha.
The objections and suggestions are invited by May 08, 2026.
[Notification no. - OERC/RA/RCO-DRES-43/2026/414]
