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The Central Electricity Regulatory Commission ("CERC"), through its Suo-Motu Order dated 18.02.2026 ("SM Order") for 'Determination of the Buyout Price as an alternate compliance mechanism towards fulfilment of Renewable Consumption Obligation'1, has determined the buyout price as an alternate compliance mechanism for fulfilment of Renewable Consumption Obligation ("RCO").
CERC thus determined the buyout price trajectory from FY 2024-25 till FY 2029-30, increasing annually from INR 347/MWh at 5%. CERC also clarified that the buyout price so determined shall remain applicable for the said period unless reviewed earlier by the CERC.
CERC, for the purposes of determining the buyout price, relied on the weighted average Renewable Energy Certificate ("REC") price discovered during the period from December 2024 to November 2025 and noted that linking the buyout price to REC prices ensures that the mechanism remains aligned with market conditions and reflects actual price discovery.
The SM Order has been passed pursuant to MOP's notification dated 27.09.2025, which provided for payment of buyout price as one of the mechanisms for RCO compliance, in addition to renewable energy procurement and purchase of RECs.
Footnote
1. Petition No. 12/SM/2025
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