The Central Electricity Regulatory Commission (CERC) has notified the CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) (First Amendment) Regulations, 2026.
The amendment expands the scope of the renewable energy certificate (REC) mechanism to include captive generating stations with self-consumption of renewable energy that do not meet the conditions of captive generating plants under the Electricity Rules, 2005. It also introduces the definitions of designated consumer, renewable consumption obligation and virtual power purchase agreement. Further, the regulations prescribe a timeline for REC issuance, requiring distribution licensees and open access consumers to apply within three months of certification by the State Commission regarding excess renewable energy procurement. The amendment also provides a framework for VPPAs, under which RECs generated from such arrangements will be transferred to the consumer or designated consumer for compliance with renewable purchase obligation (RPO) or RCO, and extinguished upon use. Excess certificates may be carried forward but cannot be traded on power exchanges.