CERC to finalise virtual PPA guidelines to boost 40GW of renewable capacity

September 18, 2025
Facebook
Twitter
LinkedIn
Reddit
Email
The move aims to address long-standing concerns over delayed payments under traditional power purchase agreements. Image: SECI.

India’s inter-state electricity transmission regulator, Central Electricity Regulatory Commission (CERC), is finalising guidelines for virtual power purchase agreements (vPPAs) to unlock financing for over 40GW of uncontracted renewable capacity and lessen reliance on utility contracts. 

The move aims to address long-standing concerns over delayed payments under traditional power purchase agreements. Announced during a Federation of Indian Chambers of Commerce & Industry’s (FICCI) webinar on vPPA, SK Chatterjee, CERC’s chief of regulatory affairs, said the framework is “almost finalised” following extensive feedback on draft guidelines issued in May. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“We want these kinds of agreements to align with our larger objectives of achieving sufficient renewable energy capacities, which could be realised through means other than traditional power purchasing agreements,” he added.  

The commission designed virtual PPAs to let stakeholders secure green credits for environmental, social and governance (ESG) compliance without conventional contracts, while backing over 40GW of renewable energy projects.  

According to CERC, vPPAs will allow corporates to back renewable projects without taking physical power, receiving certificates to prove green procurement instead. 

CERC has framed the rules to classify vPPAs as non-transferable delivery contracts, not financial derivatives, after talks with the Securities and Exchange Board of India (SEBI). Power must still be physically delivered, but into wholesale markets rather than directly to buyers. 

Subhro Paul, director at the Central Electricity Authority, said the model offers compliance benefits for buyers and revenue certainty for developers, calling it “instrumental in scaling renewable power” globally. 

The final guidelines will clarify transferability to subsidiaries and certificate accounting, with the industry expecting the framework to speed India’s 500GW renewable target by 2030 as an alternative to utility deals. 

Read Next

October 28, 2025
GreenYellow plans to invest US$116 million in Poland over the next three years to expand its installed capacity and customer base.
October 28, 2025
GoldenPeaks Capital secures EUR114 million (US$132 million) financing package for two solar PV Portfolio in Poland.
October 28, 2025
Chinese solar inverter producer GoodWe has launched a new “low noise, low weight” string inverter for the European corporate & industrial solar market.
October 28, 2025
Fotowatio Renewable Ventures (FRV) Australia has announced the development of a 210MWdc solar project in New Zealand's Rangitikei District.
October 27, 2025
Chinese engineering firm Shanghai Electric has signed an engineering, procurement, and construction (EPC) contract with independent power producer (IPP) Econergy to build a 342MW solar PV plant in Romania.
October 27, 2025
Engie has signed additional PPAs with Meta, expanding their partnership to more than 1.3GW across four solar projects in Texas.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 12, 2025
10am PST / 1pm EST
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany