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). 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.