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India’s
Virtual PPA Policy — A Vindication of My 2021-24 Vision
By
Hemen Parekh | October 2025
Introduction
Back in 2021, I wrote
'Choices to Buy –Choices to Sell',
urging that India’s renewable future needed new contracting models beyond traditional PPAs.
In 2024, my blog
'Found Missing Piece of Jigsaw Puzzle'
identified the lack of flexible, financial PPA structures as a major bottleneck.
And in 2025,
highlighted how India’s solar success story was constrained by offtake risk and delayed Discom payments.
Now,
the regulator’s Virtual PPA (vPPA) framework has arrived — and it reflects
those same ideas.
Comparison Table
|
Blog (Date) |
Key Idea Advanced |
Current Policy/Industry Measure |
How They Align / Gaps |
|
Found Missing Piece of Jigsaw Puzzle (Feb
2024) |
Need for flexible new contracting models
beyond traditional PPAs. |
CERC finalising guidelines for vPPAs to
unlock ~40 GW of uncontracted renewables. |
Full alignment; concept now in
implementation stage. |
|
Choices to Buy – Choices to Sell (Aug
2021) |
Choice-based buyer/seller flexibility and
trading of renewable attributes. |
vPPAs allow attribute-based trading
without physical delivery. |
Excellent match; aggregation and SME
participation still limited. |
|
India’s Solar Story – Paradox of Plenty
(Sep 2025) |
Need to address offtake risk and contract
rigidity to make solar capacity bankable. |
vPPAs solve offtake risk and improve
bankability by financial settlement model. |
Direct match; smaller buyers’ inclusion
remains a gap. |
Policy Implications and Reflections
The vPPA model represents a paradigm shift
from physical to financial contracting. It ensures revenue predictability for
developers, allows corporates to meet sustainability goals, and unlocks
previously stranded renewable capacity.
Gaps and Next Steps
• Expand participation beyond large
corporates to SMEs and institutions.
• Publish standardised model vPPA contracts
and settlement mechanisms.
• Ensure transparency in attribute transfer
and audit trails.
• Link vPPA-backed revenues to green
financing instruments.
• Integrate grid flexibility, storage, and
hybrid solutions.
Conclusion
The arrival of Virtual PPAs is a validation
of India’s evolving clean energy vision — and of the ideas I have been
articulating since 2021. It bridges the gap between potential and practicality,
and sets the stage for a more inclusive, finance-friendly, and participatory
renewable future.
With Regards,
Hemen Parekh
www.HemenParekh.ai / www.IndiaAGI.ai / www.My-Teacher.in / 27 Oct 2025
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