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CERC Drafts Key Amendments to REC Regulations, Introduces VPPA Provisions

The Central Electricity Regulatory Commission (CERC) has released draft amendments to the Renewable Energy Certificate (REC) Regulations, inviting stakeholder feedback by October 23, 2025. The draft aims to improve clarity, streamline processes, and strengthen compliance under the REC framework.

One key proposal clarifies eligibility for self-consumption projects that don’t meet captive criteria. Such projects may qualify for RECs if they don’t sell power to obligated entities, don’t benefit from concessional charges, and their tariff isn’t determined under Section 62 or adopted under Section 63 of the Electricity Act.

CERC also revises the filing timeline: DISCOMs and open access consumers must now apply within three months of the state commission’s certification of renewable purchases beyond obligations, replacing the earlier deadline of three months after the financial year end. Missing this window would forfeit REC issuance.

The amendment retains multipliers for projects commissioned before its effective date, while introducing a scoring model for future projects based on tariff, technology maturity, and peak support. Offshore wind would receive the highest multiplier (3.5x), followed by pumped hydro and battery storage (3x).

A new regulation introduces provisions for Virtual Power Purchase Agreements (VPPAs), ensuring RECs are transferred to consumers for RPO/RCO compliance and extinguished post-use.