The state of Gujarat has taken a strong step forward in encouraging the use of renewable energy by introducing new rules under the Gujarat Electricity Regulatory Commission (Procurement of Energy from Renewable Sources) Regulations, 2025. These rules were officially published in the government’s gazette on August 12, 2025, and are aimed at making sure that more electricity consumers rely on clean energy sources. The regulations focus on “Obligated Entities,” which include distribution companies, consumers who get electricity through open access, and those who operate their own power plants. These entities are now required to meet specific yearly targets for procuring or generating renewable energy.
The targets have been clearly defined from 2024 to 2030 and cover different categories of renewable energy, such as wind, hydro, and others. For the year 2024-25, the total renewable energy requirement has been set at 29.91 percent. This target will gradually increase every year and is planned to reach 43.33 percent by 2029-30. By setting these structured milestones, Gujarat is ensuring that the growth of renewable energy is steady and continuous over the years, leaving no room for uncertainty about the obligations.
An important feature of the regulations is the introduction of an energy storage requirement. This storage obligation has been introduced to help balance the power grid, as renewable sources like solar and wind can be variable in their supply. The storage requirement will start at 1.0 percent in 2024-25 and will increase to 3.5 percent by 2029-30. To make sure this requirement truly supports clean energy, the regulations specify that at least 85 percent of the energy fed into these storage systems must come from renewable sources. This ensures that the storage element complements the broader renewable energy goals instead of weakening them.
The rules also allow entities several options to fulfill their obligations. They can purchase electricity directly from renewable energy power plants, buy power through energy exchanges, or set up their own renewable generation systems. In addition, Renewable Energy Certificates, or RECs, can be used as a flexible tool to meet targets. This provides obligated entities with different ways to comply while still supporting the renewable energy sector.
Failure to meet the set targets will not go without consequences. The regulations clearly state that obligated entities that do not fulfill their requirements will face penalties. This measure ensures that the rules are not just advisory but mandatory, and that all stakeholders will take their responsibilities seriously.
These regulations are a clear reflection of Gujarat’s commitment to cleaner energy and climate change action. By setting ambitious yet structured targets, encouraging the use of energy storage, and providing multiple ways for entities to meet their obligations, the state has demonstrated a forward-looking approach. The step will not only help Gujarat reduce its reliance on fossil fuels but also contribute to India’s larger renewable energy and sustainability goals. Through these regulations, Gujarat is showing leadership in the renewable energy transition and setting an example for other states to follow.
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