The Central Electricity Regulatory Commission (CERC) has released the draft Power Market (First Amendment) Regulations, 2025, marking a significant move to modernise India’s electricity market.
These proposed amendments aim to deepen market liquidity, improve operational flexibility, and enable more efficient power trading. The key changes include the formal recognition of virtual power purchase agreements, which offer a financial contracting mechanism for renewable energy and will be crucial for accelerating clean energy adoption. The regulations also expand the over-the-counter market to include new instruments like battery energy storage system contracts and power banking. Furthermore, the draft strengthens regulatory oversight with enhanced inspection and audit powers for CERC, and aligns the market framework with the newer general network access regulations, replacing the older open access rules to streamline transmission access.