The Central Electricity Regulatory Commission (CERC) has released draft guidelines for Virtual Power Purchase Agreements (VPPAs) and is inviting comments, suggestions, and objections from stakeholders and interested parties. This development follows a request from the Ministry of Power dated March 3, 2025, urging CERC to establish a suitable regulatory framework for VPPAs.
The CERC, in a Public Notice dated May 22, 2025, highlighted that while the Central Electricity Regulatory Commission (Power Market Regulations) 2021 (PMR 2021) outlines various aspects of the power market, Part-8 addresses matters not explicitly listed. Regulation 54(3) of PMR 2021 grants the Commission inherent powers to address such matters as deemed appropriate.
In line with this, the CERC has formulated the Draft Guidelines for Virtual Power Purchase Agreements, which have been made available on the Commission’s website.
Stakeholders and interested individuals are requested to submit their feedback on these draft guidelines to the undersigned on or before June 20, 2025, via email at secy@cercind.gov.in and chiefeco@cercind.gov.in. The CERC has indicated that comments received after the specified deadline may not be considered during the finalization of the guidelines.
Virtual Power Purchase Agreements are gaining prominence as a mechanism for entities to support renewable energy projects and hedge against electricity price volatility without directly owning the generation assets or physically receiving the power. These draft guidelines by CERC are a step towards providing regulatory clarity and fostering the growth of VPPAs in the Indian power market.
