Virtual power purchase agreements (VPPAs), a financial tool for energy-intensive industries seeking to meet their renewable energy obligations, have not gained momentum in India despite their seemingly promising nature. The Central Electricity Regulatory Commission (CERC) recently released draft guidelines to enable designated consumers to meet their renewable commitments. Under these guidelines, a VPPA or a designated consumer may enter into long-term bilateral virtual agreements with a renewable energy generator at an agreed-upon price.

The CERC issued a time frame for waiving interstate transmission (ISTS) charges for renewable energy, energy storage projects, green hydrogen, and green ammonia. Renewable energy generation stations based on wind, solar, or hybrid sources are eligible for waivers based on their commissioning date. Projects commissioned on or before June 30, 2025, will receive a full waiver for 25 years. Projects commissioned in successive years up to June 30, 2028, will receive progressively lower waivers, reducing from 75% to 25%. Projects commissioned after June 30, 2028, are not eligible for a waiver.

India added 1.1 GW of solar open access capacity in the first quarter (Q1) of 2025, down nearly 48% from 2.1 GW in Q4 2024. Installations were down 47% year-over-year from over 2 GW, according to the Q1 2025 Mercom India Solar Open Access Market report. Domestic solar modules were scarce due to the rush to commission before the end of the financial year. The quarter saw a slowdown in the commissioning of solar open access projects due to a shortage of transmission infrastructure, delays in the clearance procedure for connectivity, and uncertainty regarding the ISTS waiver.

The Ministry of Heavy Industries launched the application portal for the ‘Scheme to Promote Manufacturing of Electric Passenger Cars in India,’ inviting global and domestic manufacturers to establish electric vehicle (EV) production facilities in the country. The application portal will remain active until October 21, 2025. The program aims to attract major global EV manufacturers by offering a reduced customs duty structure and a policy framework that encourages long-term investments in India’s automotive sector.

The Gujarat Electricity Regulatory Commission approved a tariff of ₹3.70 (~$0.043)/kWh for the procurement of 9.9 MW of wind-solar hybrid renewable energy by a power distribution licensee in the GIFT City in Gujarat. The petitioner, GIFT Power Company (GIFT PCL), had initiated power procurement through open access as a distribution licensee in May 2019. GIFT PCL has relied on a mix of short- and medium-term PPAs, the day-ahead market, and real-time market power purchases. However, with demand expected to increase from a base of 5 MW in the financial year (FY) 2025 to 20 MW by FY 2030, and peak load potentially reaching 40 MW, the company is shifting to long-term renewable sourcing to fulfill its universal service obligation and meet renewable purchase obligations.

The Ministry of Power proposed amendments to the guidelines for the tariff-based competitive bidding process to procure power from grid-connected power projects. These revisions apply to solar, wind, wind-solar hybrid, and firm and dispatchable power from renewable energy projects with energy storage systems. According to the proposed amendments, all projects will have a fixed timeline for regulatory approvals. The amendments would require that when power procurement involves an intermediary agency and the end buyer is a distribution licensee, the latter must obtain regulatory approval for the power sale agreement within 30 days of signing it. Such requirements apply to cases where prior approval was not obtained.

Integrated solar cell and module manufacturing company Premier Energies commissioned a new 1.2 GW tunnel oxide passivated contact (TOPCon) solar cell manufacturing line in Hyderabad, Telangana. TOCon technology involves an ultra-thin tunnel oxide layer (usually silicon dioxide) grown on the solar cell’s silicon wafer surface, which is then overlaid with a highly treated silicon layer. This technology helps electrons move faster compared to conventional cells. Premier Energies said the new TOPCon line has increased the company’s solar cell production capacity from 2 GW to 3.2 GW.

Solar module manufacturer Rayzon Solar filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise ₹15 billion (~$175 million) through an initial public offering of shares. The company will utilize up to ₹12.65 billion (~$147.5 million) of the net proceeds to invest in its wholly owned subsidiary, Rayzon Energy, and partly finance the development of a 3.5 GW TOPCon solar cell manufacturing plant in Surat, Gujarat. The DRHP said Axis Bank has approved a loan of ₹3 billion (~$34.98 million) for the cell facility.

The Madhya Pradesh Power Management Company invited bids to procure 800 MW of wind power from projects set up anywhere in India, with an additional capacity of up to 800 MW under the greenshoe option for 25 years. Bids must be submitted by July 23, 2025. Bids will be opened on July 25.  The scope of work also entails the identification of land, project installation, and ownership. Additionally, it involves obtaining connectivity and approvals, as well as interconnection with the ISTS or intrastate transmission system networks to supply power.

Gujarat-based Onix Renewable offered ₹264 (~$3) per share to acquire 1.6 million equity shares of Onix Solar Energy for approximately ₹429 million (~$5 million). Onix Solar Energy is a subsidiary of Onix Renewable. The offer represents 6.44% of Onix Solar Energy’s issued and outstanding voting share capital. Grow House Wealth Management is acting as the manager for this open offer. This open offer followed Onix Solar Energy’s board of directors authorizing a preferential allotment of 18.5 million fully paid-up equity shares, each with a face value of ₹10 (~$0.12), on a preferential basis. These shares represent 73.2% of Onix Renewable’s emerging voting share capital.