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Time of India
4 days ago
- Business
- Time of India
Standalone solar plant subject to 2,735 compliance tasks, 83 clauses carry imprisonment: Report
New Delhi: A standalone solar energy producing plant in Maharashtra, with a corporate office in Haryana, must comply with 799 unique obligations, resulting in 2,735 total annual compliance tasks, according to a report released by TeamLease RegTech. Of the total obligations applicable to the corporate office, 83 carry imprisonment clauses, the report titled Decoding Compliance Management for Renewable Energy Sector stated. The report highlights that these obligations span central, state and municipal levels, and are distributed across seven categories of law and three tiers of legislation. "The corporate office must adhere to 514 compliances, of which 83 carry imprisonment clauses, often for procedural lapses," the report said. The compliance load is broken down into 646 obligations from central legislation, 151 from the state level, and two from municipal regulations. The manufacturing plant component alone requires 51 approvals, permissions and registrations, and must comply with 285 legal mandates. These obligations arise across categories including safety, employee welfare and statutory audits. The regulatory framework involves multiple agencies including the Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commissions (SERCs), and the Bureau of Energy Efficiency (BEE). Obligations include adherence to Renewable Purchase Obligations (RPOs), Energy Conservation Act, tariff policies, environmental clearances, and grid integration standards in accordance with Central Pollution Control Board (CPCB) norms. Compliance challenges identified in the report include fragmentation across jurisdictions, overlapping mandates from different authorities, inconsistent policy implementation, and delays in land acquisition and environmental clearances. The continued reliance on manual, paper-based compliance systems also increases the risk of non-compliance, it said. The 799 obligations are spread across categories such as labour (244), secretarial (238), industry-specific (106), finance and taxation (84), environment health and safety (EHS) (58), commercial (38), and general (31). In terms of frequency, these include 58 monthly, 94 quarterly, 45 half-yearly and 114 annual compliances. The remaining 88 are event-based or one-time obligations. "The regulatory landscape circumscribes various standards, authorities and compliance requirements," the report noted. It further explained that the complexity is increased by the concurrent jurisdiction of central and state governments in areas like labour and electricity. The report detailed that approvals required to establish and operate the plant cover stages such as setting up (10), pre-commissioning (7), post-commissioning (4), and ongoing operations (30), totalling 51 approvals. These are governed under at least 31 Acts and Rules. Imprisonment clauses linked to compliance requirements are most prevalent under labour laws, accounting for 77.1 per cent, followed by secretarial (12 per cent), finance and taxation (8.4 per cent), and EHS (2.4 per cent). In terms of legislative origin, 66.3 per cent of these clauses stem from central laws, while 33.7 per cent are from state laws. The report further highlighted that the compliance types include returns, registers and records, payments, certificates and licenses, notices and correspondence, inspections, safety and welfare, audit and accounts, and others. The company under consideration has 100 or fewer employees and employs more than 20 contract labourers in the factory. It uses diesel generators, fire extinguishers, and consumes batteries at both manufacturing and corporate locations. It also generates e-waste, battery waste, and solid waste, with operations based on zero liquid discharge. The report recommends that renewable energy companies adopt a centralised and automated compliance strategy to manage obligations more efficiently.
Hindustan Times
4 days ago
- Business
- Hindustan Times
India's Path Through COP30 and Carbon Innovation
As the world prepares for COP30 in Belém, Brazil, in 2025, the urgency of climate action has never been greater. The IPCC's Sixth Assessment Synthesis Report (2023) confirmed what climate scientists have long warned - global warming is accelerating, and the world must act swiftly and cohesively to stay within the 1.5°C threshold. Against this backdrop, COP30 represents not only a critical inflection point for global negotiations but also a pivotal opportunity for India to fast-track its climate ambition through robust carbon markets and the adoption of cutting-edge technologies such as digitally verified carbon offsets. This World Environment Day, as we reflect on environmental stewardship, it is essential to examine how India can shape and benefit from these evolving global mechanisms. India has historically walked a tightrope between development imperatives and environmental responsibility. However, the past few years have seen a definitive shift. India remains one of the few major economies whose emissions trajectory is broadly aligned with its fair share under the Paris Agreement, despite its lower historical emissions and ongoing development needs. According to Climate Action Tracker (2024), India's climate policies are more ambitious relative to its capabilities than many high-income nations, and its renewable energy targets are among the most aggressive globally. India's target of achieving net-zero emissions by 2070, supported by intermediary milestones such as 500 GW renewable energy capacity by 2030, reflects both ambition and pragmatism. One of the most significant instruments in this strategy is the development of a national carbon market. In July 2023, India formally launched the Carbon Credit Trading Scheme (CCTS), governed by the Bureau of Energy Efficiency and the Central Electricity Regulatory Commission. This compliance carbon market builds upon the successes of the Perform, Achieve and Trade (PAT) scheme, but unlike PAT, the CCTS opens the door for trading emission reduction certificates beyond the power and industrial sectors. The policy framework under the Energy Conservation (Amendment) Act, 2022, integrates voluntary and compliance markets under a unified structure. Experts estimate that India's carbon market could unlock a $200 billion opportunity by 2030, combining domestic growth with environmental integrity. Sectors like steel, cement, transport, and even agriculture are expected to come under its ambit, allowing Indian industries to earn credits by exceeding efficiency norms and trade them within a national or international carbon market. While carbon pricing is still nascent in India, the International Carbon Action Partnership (ICAP) has acknowledged the country's proactive steps as exemplary among developing nations. This approach, experts argue, not only supports emissions reduction but offers Indian companies a competitive edge in a carbon-constrained global economy, particularly once the EU's Carbon Border Adjustment Mechanism (CBAM) fully comes into force by 2026. The credibility of carbon markets hinges not merely on the volume of credits traded, but on their integrity, traceability, and impact. Traditional Monitoring, Reporting and Verification (MRV) mechanisms are often paper-heavy, delayed, and susceptible to manipulation. In this context, Digitally Verified Carbon Offsets (DVCOs) are emerging as a transformative solution. DVCOs use blockchain, satellite imagery, remote sensing, and machine learning to validate emissions reductions in real time. This dramatically reduces verification costs and enhances transparency, making it easier for buyers to trust the offsets they purchase. The World Bank and other organizations highlight that digital MRV systems can significantly streamline the measurement, reporting, and verification processes, leading to increased efficiency and reduced transaction costs. For instance, the World Bank notes that digital technologies can help reduce the cost and time to emission reduction credit issuance, enabling more efficient verification and the move toward real-time generation of carbon credits. India is already demonstrating leadership in this domain. In January 2025, Google announced a landmark partnership with Indian start-up Varaha, which uses mobile-enabled MRV tools and remote sensing to convert agricultural waste into biochar - a stable form of carbon that also improves soil fertility. This project is anticipated to sequester up to 10,000 tonnes of CO₂ equivalent by 2030 while supporting thousands of smallholder farmers. This model exemplifies the co-benefits of digitally verified offsets: environmental impact, economic upliftment, and technological empowerment. Such solutions are scalable across sectors - be it afforestation, renewable energy, or waste management, and can serve as India's flagship offerings in global voluntary carbon markets. Platforms such as Earthlink by Earthood are, therefore, pioneering efforts being made in India to enable real-time and digital certification of emission reductions, ensuring that Indian offsets meet the high-integrity standards required under Article 6 of the Paris Agreement. Earthood's innovative approaches provide the capability to leapfrog legacy verification bottlenecks. The climate agenda at COP30 will largely hinge on the operationalisation of Article 6 of the Paris Agreement, particularly Article 6.2 and 6.4, which govern the framework for international carbon trading and the Sustainable Development Mechanism respectively. At COP29 in Dubai, countries achieved consensus on establishing a registry and tracking system for international carbon transactions, thus setting the stage for concrete market activities under Article 6 by the time COP30 convenes in Brazil. India, as a major emitter and a developing economy, is expected to play a pivotal role in shaping these dialogues. Aligning India's domestic carbon market with Article 6 mechanisms could unlock access to global finance, particularly through Internationally Transferred Mitigation Outcomes (ITMOs). These allow countries or companies to buy high-quality credits from India to offset their own emissions, thereby channeling funding into Indian climate projects, especially those involving rural communities, biodiversity preservation, or green infrastructure. Moreover, India's presidency of the G20 in 2023 and continued participation in coalitions such as the International Solar Alliance and the Leadership Group for Industry Transition (LeadIT) underscore its diplomatic clout in climate matters. India must also seize the opportunity to press for climate finance reform at COP30. While developed nations agreed to mobilise $100 billion annually by 2020, a promise largely unmet - projections suggest that developing countries will need at least $1.3 trillion annually by 2035 to meet their climate goals. India can lead the call for improved financial flows, concessional loans, and blended finance instruments, ensuring that carbon markets do not replicate historic inequities. The journey from intention to impact must be paved with transparency, innovation, and collaboration. Digitally verified carbon markets offer precisely this promise--of making emissions reductions verifiable, financeable and scalable. For India, they offer not only a pathway to meet its net-zero commitment, but also a chance to become a global provider of credible, high-integrity climate solutions. In the decade that defines the future of the planet, India must not just participate - it must lead! This article is authored by Tuhin A. Sinha, national spokesperson, BJP and Kaviraj Singh, executive director and CEO, Earthood.
Time of India
5 days ago
- Business
- Time of India
CERC pushes virtual PPAs to help industries meet renewable targets without transmission hurdles
New Delhi: The Central Electricity Regulatory Commission ( CERC ) has floated draft guidelines for virtual power purchase agreements (VPPAs), proposing a regulatory framework to enable enterprises and Designated Consumers to meet their long-term Renewable Energy Consumption Obligations (RCO) under the Energy Conservation Act, 2001. The draft defines VPPAs as non-transferable specific delivery (NTSD) over-the-counter (OTC) financial contracts between a consumer and a renewable energy (RE) generator. The draft defines VPPAs as non-transferable specific delivery (NTSD) over-the-counter (OTC) financial contracts between a consumer and a renewable energy (RE) generator. Under the structure, consumers pay a fixed pre-agreed VPPA price while the RE generator sells power on the exchange. The difference between the VPPA price and the realised market price is settled bilaterally between the two parties, without physical delivery of electricity. The Ministry of Power, through a communication dated March 3, 2025, directed CERC to develop a regulatory mechanism for such contracts to facilitate RCO compliance. In support, the Securities and Exchange Board of India (SEBI), in a letter dated January 31, 2025, clarified that VPPAs are non-tradable OTC contracts and thus do not fall under the purview of the Securities Contracts Regulation Act, 1956. The guidelines provide that RE generators entering VPPAs must register under the REC Regulations, 2022. Renewable Energy Certificates (RECs) generated through such contracts must be transferred to the consumer and extinguished as per REC Registry procedures. These RECs cannot be traded. "The RE generator shall sell electricity through power exchange or any other mode authorised under the Electricity Act 2003, and the difference between the VPPA price and the market price shall be settled bilaterally between the contracting parties as per mutually agreed terms," the draft states. Consumers may execute VPPAs directly, through registered traders, or via OTC platforms recognised by CERC. Disputes related to these contracts will be resolved in accordance with the agreed terms in the bilateral agreement. The Commission has sought stakeholder feedback on the proposed guidelines before finalising the framework. The move is expected to support India's target of achieving 500 GW of installed capacity from non-fossil sources by 2030.
Time of India
28-04-2025
- Business
- Time of India
NITI Aayog reviews role of central, state electricity regulators
New Delhi: India is targeting an overhaul of power sector regulations , with necessary changes in the role and accountability of entities. Towards this, government think-tank NITI Aayog has initiated a study on the autonomy, role clarity, capacity and accountability of the Central Electricity Regulatory Commission ( CERC ) and State Electricity Regulatory Commissions ( SERCs ), a senior government official told ET. "The study is aimed at strengthening these institutions to address the rapidly changing nature of electricity, including entry of new market players, new types of systems, and new products in the sector which demands greater responsibility and accountability on the part of the regulators," the official said. The plan is to enable energy regulators to undertake systemic changes in their approach and functioning to better address the challenges faced by regulatory commissions including maintaining viability of the power system, attracting private investments and protection of public interest. The study is expected to conclude by this year-end with proposed changes to the regulatory commissions getting implemented from next year, the official said. The Aayog is of the view that while some electricity regulatory commissions (ERCs) have developed a reputation for high-quality regulation, enforcement, and adjudication, few ERCs continue to draw criticism on issues such as regulatory capture, delay in tariff orders , and lack of autonomy. This has necessitated the need for a study to revamp the structure, function and power to make them more robust. India expects peak power demand to surge to 370 GW by 2030 from 243 GW currently. This will require massive expansion and strengthening of the electricity generation, transmission and distribution system in the country. The CERC was set up in 1998, under the provisions of the Electricity Regulatory Commission Act , 1998. It is the central commission for purposes of the Electricity Act, 2003, and is primarily responsible for regulating tariffs of generating companies owned or controlled by the Centre and tariffs for interstate transmission of electricity. It is also responsible for promoting competition, efficiency and economy in activities of the sector besides supporting investments in the power sector.
