Virtual Power Purchase Agreements As A New Contract Framework For Corporate Renewable Procurement

India's decarbonisation story has so far relied heavily on physical open access power purchase agreements, green tariffs and the market for renewable energy certificates. For large industrial and commercial consumers with multi-site load, grid constraints and evolving renewable purchase obligations, those tools are increasingly necessary but not always sufficient. Virtual power purchase agreement (VPPA) are now available as a new tool for corporate buyers to participate in the development of new renewable energy projects, while being able to lock in market pricing signals without taking on delivery risk associated with any one specific project, or with an open access arrangement.