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ARTICLE · 16 APRIL 2024

Exploring Virtual PPAs In The Indian Renewable Energy Space

BTG Advaya
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India has a big goal for clean energy, aiming for 500 GW of installed renewable energy capacity by 2030, which necessitates innovative solutions.

GlobalEnergy and Natural Resources
Ishaan Chopra
Ishaan Chopra
Suruchi Kotoky
Suruchi Kotoky
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India has a big goal for clean energy, aiming for 500 GW of installed renewable energy capacity by 2030, which necessitates innovative solutions. The usual deals i.e. Power Purchase Agreements (PPAs) work and have played a crucial role in driving India's renewable energy (RE) adoption, but they've got some downsides as well. That's where Virtual PPAs (VPPAs) come in - a new kind of clean energy buying option for businesses that's a win-win for everyone involved in the energy landscape (especially the corporate energy consumers and RE generators).

Understanding VPPAs

Unlike traditional PPAs where consumers directly receive electricity from a specific RE project, a VPPA operates differently. In a VPPA, there is no physical exchange of electricity. VPPA functions as a derivative contract1, where a consumer (buyer) and a RE generator (seller) agree on a fixed price (also known as 'strike price') for a predetermined amount of notional electricity, and the

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