The Central Electricity Regulatory Commission (CERC) has amended its Renewable Energy Certificate (REC) regulations, effective March 24, 2026, to bolster compliance and introduce a Virtual Power Purchase Agreement (VPPA) framework. Key changes include defining Renewable Consumption Obligation (RCO), mandatory 3-month application timelines, and automated REC transfers for VPPAs to drive market efficiency and transparency.

The Central Electricity Regulatory Commission (CERC) has amended its Renewable Energy Certificate (REC) regulations, effective March 24, 2026, to bolster compliance and introduce a Virtual Power Purchase Agreement (VPPA) framework. Key changes include defining Renewable Consumption Obligation (RCO), mandatory 3-month application timelines, and automated REC transfers for VPPAs to drive market efficiency and transparency. 

Key Highlights of the Amendments
VPPA Framework (Regulation 14 A):-
 The new framework officially recognizes V PPAs, allowing automatic transfer of RECs generated from these arrangements to the designated consumer, ensuring easier fulfillment of RPO or RCO obligations.
Revised REC Issuance Timelines:-
 Distribution licensees and open-access consumers must apply for REC issuance within three months of the State Commission’s certification of excess energy, with strict penalties (no issuance) for non-compliance.
Expanded Scope: -
The amendment allows certain captive generating stations that do not meet 2005 Electricity Rules, but have self-consumption of renewable energy, to participate in the REC mechanism.
New Multiplier Structure: -
For projects commissioned after the 2026 amendment, certificates will be issued based on a new, weighted methodology focusing on technology maturity and grid support.
Definitions and Accountability: -
Definitions for "designated consumers" are aligned with the Energy Conservation Act, 2001, to improve tracking of non-fossil energy consumption.
This updated regulation aims to encourage greater investment in diverse renewable technologies and streamline the mechanism for voluntary and compliance-driven renewable energy purchasing in India. 
CERC Notifies 2026 Amendment to REC Regulations Framework: -
 Mercom India
   The amendment introduces key definitions under Regulation 2, including “designated consumer” aligned with the Energy Conservation Act, 2001.

MJF Lion ER YK Sharma 

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