CERC Aligns Green Power Trading Framework with Revised Renewable Consumption Obligation Regime

In a regulatory development for India’s renewable energy sector, the Central Electricity Regulatory Commission (CERC) has approved amendments to the green power trading framework of the Indian Energy Exchange (IEX) under Petition No. 338/MP/2025. The decision seeks to align exchange-based renewable energy trading with the revised Renewable Consumption Obligation (RCO) framework introduced by the Ministry of Power.

The move reflects India’s broader objective of creating a more transparent, efficient, and market-driven mechanism for achieving its clean energy targets.

Revised Renewable Consumption Obligation Framework

The Ministry of Power’s revised RCO framework, finalized in September 2025, introduced a revised categorization of renewable energy procurement obligations. It moves beyond the earlier solar and non-solar distinction under the Renewable Purchase Obligation (RPO) framework.

Under the new regime, renewable energy procurement is categorized into four segments:

• Wind Energy
• Hydro Energy
• Distributed Renewable Energy (DRE)
• Other Renewable Energy Sources

The revised classification is intended to better reflect the evolving renewable energy landscape and provide greater clarity in compliance obligations.

Restructured Green Market Products on IEX

To facilitate implementation of the new framework, CERC approved IEX’s proposal to restructure its green market products. The restructured products include:

• Green Day-Ahead Market (G-DAM)
• Green Intra-Day Contracts
• Green Monthly Contracts

Going forward, market participants will be required to identify and certify the precise renewable energy source being traded through supporting documentation, including No Objection Certificates (NOCs) where applicable. This is expected to improve traceability and strengthen confidence in green power transactions.

Enhanced Transparency Measures

The Commission has also introduced enhanced transparency measures. Where distribution companies offer bundled renewable energy portfolios on the exchange, details of the individual generating stations and their respective renewable energy sources must be disclosed to prospective buyers.

Such disclosures are likely to improve market confidence and facilitate informed purchasing decisions.

Fungibility Among Renewable Energy Categories

Another noteworthy aspect of the revised framework is the introduction of fungibility among certain renewable energy categories. Surplus procurement from Wind, Hydro, or Other Renewable Energy categories may be used to offset deficits in another category.

However, DRE obligations remain non-fungible, meaning compliance must be achieved through actual procurement from distributed renewable energy sources. This approach is intended to ensure dedicated procurement from distributed renewable energy resources in accordance with the revised RCO framework.

Reduced Minimum Bid Size and Market Accessibility

CERC has reduced the minimum bid size for Green Day-Ahead Contingency and Green Intra-Day contracts from 0.220 MW to 0.1 MW. This measure is expected to broaden market participation, particularly for smaller renewable energy generators and consumers.

The Commission has also directed Grid India, through the National Load Despatch Centre (NLDC), to make corresponding changes to the National Open Access Registry (NOAR) portal and related procedures.

Conclusion

CERC’s approval of the revised green power trading framework represents an important step in harmonizing India’s electricity markets with its evolving renewable energy policy framework. The Commission has laid the groundwork for a more robust and efficient green power market by:

• Introducing clearer renewable energy classifications
• Strengthening transparency requirements
• Enhancing market accessibility
• Facilitating compliance under the revised RCO regime

The reforms are expected to play a crucial role in supporting India’s renewable energy transition while ensuring that market mechanisms remain aligned with national sustainability and energy security objectives.

Last Updated on 17 June, 2026