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ARTICLE · 09 JULY 2025

CERC Proposes Introduction Of Virtual Power Purchase Agreements

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The Central Electricity Regulatory Commission has through its Public Notice bearing No. L-1/257/2020/CERC dated 17 June 2025 released the draft CERC Regulations, 2025 inviting comments / suggestions / objections from stakeholders on or before 14 July 2025.

IndiaEnergy and Natural Resources
Saransh Shaw
Saransh Shaw
Rikit Shahi
Rikit Shahi
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Introduction

The Central Electricity Regulatory Commission (CERC) has through its Public Notice bearing No. L-1/257/2020/CERC dated 17 June 2025 released the draft CERC (Power Market) (First Amendment) Regulations, 2025 (Draft Power Market Amendment Regulations) inviting comments / suggestions / objections from stakeholders on or before 14 July 2025. Through the Power Market Amendment Regulations, CERC is proposing a significant amendment in the form of recognition of Virtual Power Purchase Agreements (VPPAs) in relation to the Indian power market.

The aforesaid draft amendment comes in the backdrop of the Public Notice bearing No. L-1/257/2020/(PMR-2)/CERC dated 22 May 2025 vide which CERC had earlier proposed to introduce the draft Guidelines for VPPAs (Draft VPPA Guidelines). Through Public Notice bearing No. L-1/257/2020/CERC dated 20 June 2025 the last date for submission of comments / suggestions / objections from stakeholders on the draft VPPA Guidelines has

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