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India's renewable energy boom stunted by regulatory ambiguity over sales accords

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India's renewable energy boom stunted by regulatory ambiguity over sales accords

The renewable energy sector in India is experiencing regulatory ambiguity that is impeding its growth. Renewable energy companies are reluctant to sign virtual power purchase agreements (VPPAs) due to a lack of regulatory clarity. These agreements involve selling power at a fixed price through an exchange rather than a common grid. The uncertainty arises from the conflict between the Securities Contracts (Regulation) Rules and the Central Electricity Regulatory Commission overseeing VPPAs. Legal experts suggest that VPPAs are valid under Indian law but advise caution to avoid potential disputes. As a result, companies are hesitant to adopt VPPAs until regulatory matters are resolved.

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