Which wind and hydro projects count towards the wind and hydro components of the Renewable Consumption Obligation?
Under Ministry of Power notification S.O. 4421(E) of 27 September 2025, the wind and hydro components of the Renewable Consumption Obligation (RCO) are met from projects commissioned after 31 March 2024. Older hydro sits in other renewable energy, which also lists all wind. The wind, hydro and other components can cover each other's shortfalls.
What the notes to the table say
- Note 2: the obligation under the wind component shall be met by energy produced from wind power projects commissioned after 31st March, 2024.
- Note 3: the hydro component shall be met by energy from hydro power projects commissioned after 31st March, 2024. It may also be met out of the free power provided to the State or distribution licensee from such projects, and from hydro projects located outside India as approved by the Central Government on a case-to-case basis.
- Note 5: the other renewable energy component may be met by electrical energy from any renewable project other than those in Notes 2, 3 and 4. It shall include, but not be limited to, all wind power projects, hydro power projects including free power commissioned before 1st April, 2024, and co-firing of biomass pellets and charcoal produced from municipal solid waste.
- Paragraph 3: the wind, hydro and other components are fungible, so a shortfall in one may be met by surpluses from others. Distributed renewable energy is non-fungible for its shortfall, but its surplus may offset other components.
Who this matters to
The targets page explains who carries which part of the obligation, for a distribution company and for a factory.
Where the text is not exact
Note 5 lists all wind power projects under other renewable energy without repeating a date, while Note 2 reserves the wind component for projects commissioned after 31 March 2024. Our reading is that older wind belongs in the other component and newer wind in the wind component; the notification does not say it in those words.
Note 3 says free power from "such projects" can meet the hydro component. On our reading, "such projects" means those commissioned after 31 March 2024. Note 5 puts free power from hydro commissioned before 1 April 2024 into other renewable energy.
2026-27 shares for a distribution company with 10,000 million units of adjusted consumption
- Wind 1.97% = 197; hydro 1.34% = 134; distributed 2.70% = 270; other 29.94% = 2,994 million units
- Total 35.95% = 3,595 million units (197 + 134 + 270 + 2,994 = 3,595)
- If wind falls 47 short and other renewable has a 47 surplus, the wind shortfall is met, because the two are fungible
- If distributed falls 20 short, a surplus in other renewable cannot cover it
The 10,000 million units is an example. The percentages and the fungibility rule are the notification's.
What Senseible does here
Senseible reads your electricity bills and fuel invoices into dated records, so the units on your bills are on file. It does not work out an obligation or tell you which component a unit counts under.
- RCO targets by year
- The distributed renewable component
- RCO for open access consumers
- Covering an RCO shortfall
- Emissions calculators
Last reviewed 2026-11-06. Read from Notes 2, 3 and 5 and paragraphs 3 and 5 of S.O. 4421(E), 27 September 2025, on 6 November 2026. The two readings in the section on exactness are our own and are marked as such.