CERC Issues Draft Guidelines For Boosting Virtual PPAs

CERC Issues Draft Guidelines For Boosting Virtual PPAs

The Central Electricity Regulatory Commission (CERC) has released draft guidelines for Virtual Power Purchase Agreements (VPPAs), aiming to support the country’s renewable energy push by offering a market-based tool for meeting clean energy targets.

The proposed rules, issued in May, outline a framework to enable designated consumers to fulfill their Renewable Consumption Obligations (RCOs) without requiring physical delivery of electricity. The guidelines include provisions for contract standardization, financial settlement mechanisms, curtailment management, certificate transfer, registry coordination, and transparent tracking systems.

The draft follows an October 2023 notification from the central government, in consultation with the Bureau of Energy Efficiency (BEE), mandating minimum non-fossil fuel energy use for designated consumers under the Energy Conservation Act, 2001.

Under the new regime, consumers such as distribution companies, open access users, and captive power users must meet differentiated renewable consumption targets based on their total electricity usage. These obligations may be met through direct procurement or by purchasing Renewable Energy Certificates (RECs). Non-compliance will attract penalties, the draft said.

Relief for Captive Users on ALMM Applicability

Separately, the Ministry of New and Renewable Energy (MNRE) has clarified the scope of exemptions under the Approved List of Models and Manufacturers (ALMM) for solar projects. In a recent memorandum, the ministry stated that captive solar systems—such as those under net billing, virtual net metering, and group net metering—commissioned before June 1, 2026, will be treated on par with conventional net metering for ALMM compliance.

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The clarification comes ahead of the scheduled rollout of ALMM-II, which will extend ALMM requirements to solar cells beginning June 2026. The ministry confirmed that the net billing and group metering models are variants of net metering and will receive the same regulatory treatment.

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