The Central Electricity Regulatory Commission (CERC) on March 24, 2026, issued the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) (First Amendment) Regulations, 2026, further to amend the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022.
The following has been stated:
• These regulations shall come into effect from March 24, 2026.
• Firstly, new definitions have been inserted under Regulation 2, including “Designated Consumer” (as per the Energy Conservation Act, 2001), “Renewable Consumption Obligation (RCO)” (mandating minimum non-fossil energy consumption), and “Virtual Power Purchase Agreement (VPPA)”, thereby aligning REC regulations with evolving energy market mechanisms.
• Further, Regulation 4 has been amended to broaden eligibility by including renewable captive generating plants that may not meet captive criteria under the Electricity Rules, 2005, but have self-consumption. Regulation 10(3) has been substituted to prescribe that eligible entities, such as distribution licensees or open access consumers, shall apply for issuance of RECs within three months from certification of excess renewable purchase, failing which certificates will not be issued.
• Significant revisions have been made in Regulation 12 relating to Certificate Multiplier, where different multipliers are specified for renewable sources based on commissioning timelines, and a new structured methodology (Appendix-1) has been introduced. The multiplier now depends on factors like tariff range, technology maturity, and capacity credit, with validity fixed at 15 years from commissioning; beyond this period, RECs will be issued at a uniform rate of 1 REC per MWh.
• A new Regulation 14A has been inserted to govern the treatment of RECs under VPPA arrangements, providing that certificates shall be transferred to the consumer/designated consumer, can be used for meeting RPO/RCO, and will be extinguished upon use, with surplus allowed to be carried forward but not traded.
[Notification no. - RA-14026(11)/1/2022-CERC]
