CERC Notifies CERC (Terms And Conditions For Renewable Energy Certificates For Renewable Energy Generation) (First Amendment) Regulations, 2026

CERC by its notification dated 24.03.2026, has notified the CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) (First Amendment) Regulations, 2026 (“REC Amendment Regulations”)¹ amending the CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022 (“REC Regulations”).

The key highlights of the REC Amendment Regulations are as follows:

1. Insertion of New Definitions: Definitions for ‘Designated Consumer’, ‘Renewable Consumption Obligation (“RCO”)’ and ‘Virtual Power Purchase Agreement (“VPPA”)’ have been added.
2. Eligibility for Renewable Energy Certificate (“REC”): Regulation 4(3) has been amended to expand eligibility by including renewable energy generating plants not fulfilling the conditions of captive generating plant under the Electricity Rules, 2005 but having self-consumption.
3. Application for Issuance of REC: The timeline for application has been revised by amending Regulation 10, which requires eligible entities to apply within 3 months from the date of certification by the concerned State Commission, instead of from the end of the financial year.
4. Certificate Multiplier (Amendment to Regulation 12):
   1. Technology-specific multipliers have been introduced for different renewable energy sources.
   2. Projects commissioned after 05.12.2022 and before REC Amendment Regulations will be entitled to certificate multipliers such as: On shore Wind and Solar – 1; Hydro – 1.5; Municipal Solid Waste (“MSW”)/non-fossil co-generation – 2, Biomass/Biofuel – 2.5.
   3. For projects commissioned after the issuance of REC Amendment Regulations, multipliers will be assigned as per Appendix-1 of the REC Amendment Regulations.
   4. The multiplier, once assigned, shall remain valid for 15 years from commissioning and 1 REC shall be issued per 1 MWh.
5. RECs under VPPAs (Insertion of Regulation 14A):
   1. RECs issued to generating stations under a VPPA shall stand transferred to the consumer or designated consumer, who shall use these RECs to meet their renewable purchase obligation (“RPO”) or renewable consumption obligation (“RCO”).
   2. The RECs once transferred to the consumer or designated consumer shall stand extinguished.
6. Principles for REC Multiplier (Appendix-1): Certificate multipliers will be determined based on tariff range, technology maturity, and capacity credit/peak support.

Footnote

1. CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) (First Amendment) Regulations, 2026.

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