The Central Electricity Regulatory Commission (CERC) has notified the draft CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) (First Amendment) Regulations, 2025.
The draft amendments propose key changes to align the renewable energy certificate (REC) framework with evolving market structures and compliance mechanisms. The draft proposes new definitions including designated consumer, renewable consumption obligation (RCO), and virtual power purchase agreement (VPPA) to expand eligibility and enable emerging procurement models. Captive renewable energy generating plants with self-consumption that do not fulfil conventional captive criteria have been brought under the REC framework. Applications for certificate issuance must now be filed within three months from State Commission certification. The amendment also introduces a revised certificate multiplier mechanism to incentivise emerging technologies, with onshore wind and solar assigned a multiplier of 1.0, hydro 1.5, municipal solid waste and non-fossil fuel-based cogeneration 2.0, and biomass and biofuel 2.5. For other technologies, the multiplier will be determined on a case-by-case basis. A new regulation has been inserted to govern the treatment of certificates under VPPAs, enabling their transfer to the designated consumer to meet renewable purchase obligations or RCO obligations, with provisions for carry forward of excess certificates.