Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

CERC Releases Draft Guidelines for Virtual PPAs, Marking a Milestone in India’s C&I Renewable Energy Push

India’s renewable energy journey has seen major progress recently, especially in the last 14 months. Reflecting the saying “There are weeks where decades happen,” this period has been transformational. A key development is the Central Electricity Regulatory Commission (CERC) releasing draft guidelines for Virtual Power Purchase Agreements (VPPAs)—a long-awaited reform that could revolutionize the commercial and industrial (C&I) segment of India’s renewable energy market.

For over eight years, the National Solar Energy Federation of India (NSEFI) has been pushing for a formal VPPA framework. This persistent effort has finally paid off. VPPAs allow companies to support and benefit from renewable energy without physically taking power at their location. Instead, they sign a contract for renewable energy generation and settle financially, making it a flexible and impactful tool for C&I consumers.

As India accelerates its energy transition, such innovative market structures are crucial. The VPPA framework will play a vital role in scaling renewable energy by attracting large consumers to invest in clean energy—even without direct access to the power. These guidelines are a big step toward a more flexible, market-driven, and scalable renewable energy system in India.