VPPA – Regulatory Regime In India

India ranks 4th globally in terms of the installed renewable energy capacity¹ and about 42.3% of our total installed capacity is based on renewable energy sources (such as, solar, wind, hydro, waste to energy, etc.)². Importantly, India has ambitious targets with respect to clean energy, such as, (i) to achieve 500 GW of installed capacity from non-fossil sources by 2030; (ii) source about 50% of its power from non-fossil fuel-based energy resources by 2030; (iii) to reduce emission intensity to 45% below 2005 levels by 2030; and (iv) achieve Net Zero Emissions by 2070.³

The global focus to reduce carbon footprint and our aggressive clean energy targets has increased the demand for renewable energy in India. Additionally, a number of commercial & industrial ("C&I") consumers are increasingly moving towards procuring green power (as against conventional power) for its operations. This seems to be mainly on account of tariff for renewable power achieving grid parity