The Central Electricity Regulatory Commission (CERC) has approved a major restructuring of green power contracts at Indian Energy Exchange Limited (IEX), marking an important step in aligning India’s electricity trading system with the latest Renewable Consumption Obligation (RCO) framework issued by the Ministry of Power. The order was issued under Petition No. 338/MP/2025 and is expected to significantly improve the way renewable energy is traded and accounted for in the country.
Earlier, India’s renewable energy compliance mechanism was largely based on separate Solar and Non-solar Renewable Purchase Obligations (RPOs), with hydropower later added as another category. However, in line with India’s growing clean energy ambitions and changing policy requirements, the Ministry of Power revised the framework in October 2023 and finalized the updated RCO structure in September 2025. The new policy divides renewable power procurement into four categories: Wind Energy, Hydro Energy, Distributed Renewable Energy (DRE), and Other Renewable Energy sources.
To support this transition, IEX requested approval from CERC to modify its trading systems and business rules. During the proceedings, the Commission reviewed submissions from IEX and the National Load Despatch Centre (NLDC), operated by Grid India. CERC observed that the new categorization would help obligated entities such as DISCOMs, open-access consumers, and captive power users meet their renewable energy obligations more efficiently and transparently.
Under the approved structure, IEX will gradually replace the older renewable energy categories across its trading platforms, including the Green Day-Ahead Market (G-DAM), Green Intra-day Contracts, and Green Monthly Contracts. These products will now operate according to the newly defined four-category framework. To ensure clarity and transparency, sellers participating on the exchange will need to provide a No Objection Certificate (NOC) or similar approval clearly mentioning the exact renewable energy source category.
The Commission also directed that when state DISCOMs sell bundled renewable portfolios on the exchange, details of the individual generating stations and their renewable energy sources must be displayed for buyers. This step is aimed at improving transparency and strengthening buyer confidence in green power transactions.
Another key feature of the revised framework is the concept of fungibility among renewable categories. According to the Ministry of Power guidelines, shortages in Wind, Hydro, or Other Renewable Energy obligations can be adjusted using surplus procurement from the other categories. However, Distributed Renewable Energy remains non-fungible, meaning shortfalls cannot be compensated using surplus from other renewable segments. This provision is intended to encourage the actual installation of small-scale distributed systems such as rooftop solar projects.
CERC also approved changes to improve market participation and trading efficiency. The minimum bid size for Green Intra-day and Green Day-Ahead Contingency contracts has been reduced from 0.220 MW to 0.1 MW in line with Open Access regulations. In addition, all Green Term Ahead Market contracts will now be traded uniformly in Megawatt-hours (MWh).
The Commission has directed NLDC to implement the necessary updates on the National Open Access Registry (NOAR) portal and revise short-term open access procedures accordingly. IEX has also been instructed to publish the revised business rules on its official platform, paving the way for a more streamlined and transparent green energy trading ecosystem in India.
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