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ARTICLE · 02 JULY 2025

Projects, Energy & Infrastructure Monthly Newsletter | June 2025

The Central Electricity Regulatory Commission (CERC) has issued draft guidelines for Virtual Power Purchase Agreements (VPPAs), potentially introducing a significant new mechanism to support designated consumers...

IndiaEnergy and Natural Resources

LEGAL & POLICY UPDATES

CERC issues Guidelines for Virtual Power Purchase Agreements

  • The Central Electricity Regulatory Commission (CERC) has issued draft guidelines for Virtual Power Purchase Agreements (VPPAs), potentially introducing a significant new mechanism to support designated consumers in meeting their Renewable Consumption Obligation (RCO) targets. This move aligns with India's broader commitment to achieving 500 GW of installed non-fossil fuel capacity.
  • Under the proposed framework, designated consumers may enter into longterm bilateral VPPAs with renewable energy generators at a mutually agreed price. While the physical power generated may be sold on power exchanges (e.g., Day-Ahead Market or Real-Time Market) or via other authorized modes under the Electricity Act, 2003, the consumer will receive Renewable Energy Certificates (RECs) representing the green attributes of the power.

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