The Central Electricity Regulatory Commission (CERC) has issued the draft guidelines for virtual power purchase agreements (VPPAs) under the CERC(Power Market Regulations), 2021.
The draft aims to enable designated consumers to meet their renewable energy consumption obligation (RCO) targets through bilateral, non-tradable, and non-transferable over-the-counter contracts classified as non-transferable specific delivery agreements. The commission emphasised that VPPAs can serve as a viable mechanism to support compliance with RCO targets under the energy conservation act, 2001. The draft guidelines are based on a study of international practices and seek to institutionalise VPPAs as part of India’s strategy to scale renewable energy capacity and facilitate market-based compliance.