The Central Electricity Regulatory Commission (CERC) has approved Indian Energy Exchange’s (IEX) proposal to revise its green contracts to align with the Ministry of Power’s updated renewable consumption obligation framework, replacing the earlier solar, non-solar, and hydro categories with wind, hydro, distributed renewable energy, and other renewable energy.

Background

In February 2022, CERC approved IEX’s proposal to introduce hydropower contracts in the Green Term Ahead Market (G-TAM). In June, CERC allowed hydropower contracts to be extended beyond 11 days from the trade date.

In October 2023, the Ministry of Power issued a notification revising the renewable consumption framework into categories for wind, hydroelectricity, distributed renewable energy, and other renewable energy.

In July 2024, IEX filed a separate petition for introducing the Green Real-Time Market (G-RTM). IEX stated that the revised renewable energy classification could also apply to G-RTM once approved.

In January 2025, IEX filed the present petition before CERC, seeking approval to revise its Green Contracts and Business Rules in line with the Ministry of Power’s renewable consumption framework.

In May 2025, the Commission then issued a notice to NLDC, directing it to file its response.

During the hearing in August 2025, NLDC said it had no objection to IEX’s petition. CERC directed NLDC to file its reply and asked both IEX and NLDC to clarify the fungibility provisions under the renewable consumption framework.

In the same month, the Ministry of Power issued a draft renewable consumption obligation (RCO) notification, which provided fungibility among wind, hydro, and other renewable energy components, while treating distributed renewable energy differently.

NLDC filed its reply in September 2025, stating that if the Commission approved the reclassification, the existing solar/non-solar/hydroelectricity designation must be replaced with wind, hydroelectricity, distributed renewable energy, and other renewable energy in standing clearances and the National Open Access Registry (NOAR) portal.

The Ministry of Power issued the final RCO notification later in September 2025, specifying renewable consumption targets, categories, fungibility rules, and compliance provisions.

IEX filed additional information regarding the fungibility provisions and stated that each RCO component should exist separately in green contracts.

Later, during the CERC hearing, IEX reiterated the need to align contracts with the new RCO categories.

It stated that the green contracts were originally structured around solar and non-solar categories. The hydroelectricity contracts were added after large projects were recognized for hydro power obligation compliance.

Commission’s Analysis

CERC noted that revising green contracts on power exchanges was necessary to align them with the Ministry of Power’s latest RCO framework. It stated that the revised categories would help obligated entities meet their renewable purchase and consumption obligations.

The Commission allowed IEX to reclassify its green contracts from the earlier solar, non-solar, and hydroelectricity categories to wind, hydro, distributed renewable energy, and other renewable energy.

It directed IEX to align seller eligibility, green contracts classifications, and fungibility provisions with the Ministry of Power’s September 2025 RCO notification.

The Commission held that the market-clearing mechanism would remain the same. It also held that IEX must issue category-wise trade certificates, ensure traceability of renewable energy in distribution company portfolio sales, update its software and rules, and upload revised documents.

CERC directed NLDC to modify the NOAR portal and temporary general network access procedures to reflect wind, hydroelectricity, distributed renewable energy, and other renewable energy categories.

The Commission also approved reducing the minimum quotation volume in green intra-day and day-ahead contingency contracts to 0.1 MW.

CERC recently proposed changes to the framework governing the deviation settlement, infirm power injection, and payment timelines.

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