Latest news with #VPPA
Hindustan Times
12 hours ago
- Business
- Hindustan Times
The virtual PPA voyage in India
On May 22, 2025, the Central Electricity Regulatory Commission (CERC) released draft guidelines to establish a regulatory framework for Virtual Power Purchase Agreements (VPPAs), marking another milestone on India's path to its 500 GW renewable energy (RE) target. VPPA is a form of a corporate power purchase agreement (CPPA). A VPPA or a CPPA is not defined under the Indian legislation yet. However, the same is already internationally recognised. VPPAs are essentially contracts for difference, allowing corporates to transact with project developers at a fixed price for a fixed duration. While the power is sold on the exchange, Renewable Energy Certificates (RECs) corresponding to the power sold are transferred to the corporate(s) and the differential is paid by the corporate upon transfer of RECs. The VPPA mechanism aims to enhance RE procurement by large commercial and industrial (C&I) consumers with substantial electricity demand. The VPPA model is operative in countries like Australia, UK and the US. In these liberalised electricity markets, VPPAs operate as commercial agreements with no requirement of special energy regulatory approval. Though in some jurisdictions VPPAs are subject to derivative accounting rules. India (until now) had not formally integrated VPPAs into its legal framework. Instead, corporate offtakers (C&I customers) met their RE goals through open-access or captive-supply arrangements, principally via three primary routes of RE consumption i.e. onsite solar, intra-state offsite solar and purchasing RECs. Since corporates generally seek low-risk, firm and competitively priced RE options, exercising these routes of consumption has often been constrained by state-level regulatory issues, surcharges, net-metering caps, wheeling policies etc. In India, while 70 to 80% of the corporates report procuring RE and many have joined the global RE100 initiative, their actual RE consumption still lags i.e. just 7 to 10% of total electricity use compared to 20% in case of companies from the US. CERC's new draft guidelines now provide the first formal recognition of a VPPA contract format. It is perceived that introduction of VPPAs will provide C&I consumers with a fourth option enabling inter-state procurement. Like how it operates internationally, draft guidelines provide that VPPA would allow a designated consumer to financially settle a contract with an RE generator without physically receiving power. The RE generator will sell electricity on exchanges and RECs generated from such sales will be transferred to the consumer for RCO compliance. The price realised on the exchange will then be settled with the consumer. Further, in the draft guidelines VPPAs are proposed to be Non-Transferable Specific Delivery (NTSD) Over-the-Counter (OTC) contracts between consumers and RE generators. Guidelines acknowledge SEBI's clarification that such OTC contracts do not fall under the Securities Contracts (Regulation) Act, placing them within CERC's jurisdiction. This resolves the earlier concerns among corporates (C&I customers) that VPPAs might be treated as derivative instruments, potentially subjecting them to additional regulatory burdens. Though the guidelines come as a first step for formal recognition of VPPAs, they do not yet outline the full regulatory mechanism. The guidelines specify that VPPA disputes will follow the terms of the contract, however, the questions remain as to how VPPAs will be monitored and whether ultimately CERC or any other adjudicatory body will have the jurisdiction. The guidelines also offer limited information on disclosure obligations, risk management protocols etc. This is relevant since the contract would be executed through OTC platforms and the underlying power would be traded on the exchange. It will be important for these gaps to be addressed in follow on regulations or implementation rules. Although the guidelines offer a route for C&I consumers to meet RCO and sustainability goals by avoiding geographic and regulatory barriers, maintaining price competitiveness may be a concern. Much of India's electricity generation is tied up in long-term contracts and the exchange market is largely driven by thermal power. To remain financially viable and cash neutral VPPA tariffs may have to match or beat prevailing break-even rates. In addition to benefitting C&I customers, VPPAs may also aid RE generators by diversifying their customer base. Currently RE developers primarily engage with RPO-bound entities through long-term PPAs. VPPAs on the hand would introduce medium-term contractual opportunities, offering a more flexible and market-aligned price structure. This article is authored by Poonam Verma Sengupta, partner, JSA Advocates and Solicitors.
Business Wire
22-04-2025
- Business
- Business Wire
Donaldson Company Releases Fiscal Year 2024 Sustainability Report
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE:DCI), a leading worldwide manufacturer of innovative filtration products and solutions, today published its Fiscal Year 2024 Sustainability Report. The report details progress against the Company's 2030 Sustainability Ambitions and outlines actions taken to reduce environmental impact, enhance employee safety, and invest in communities—efforts that support long-term business resiliency and customer alignment. 'Our sustainability strategy—Filtration for a Thriving Future—is tightly integrated with how we drive innovation, serve customers, and manage risk,' said Tod Carpenter, chairman, president and chief executive officer. 'Fiscal 2024 was marked by tangible progress, with continued execution of initiatives that create value for our stakeholders and position Donaldson for long-term growth.' Key Progress in Fiscal Year 2024 Business Advantage Through Sustainability The report also outlines how Donaldson's sustainability efforts are enabling the company to: Reduce energy and material costs through operational efficiency and waste reduction Enhance supply chain competitiveness through renewable energy sourcing and emissions transparency Strengthen customer relationships, particularly with OEMs and multinationals seeking lower-carbon, circular solutions Maintain a strong reputation among institutional investors, regulators, and rating agencies New in Fiscal Year 2024 The introduction of an ambition to reduce landfill waste from operations and/or increase recycling, reuse, and material optimization, targeting a total impact of 3,200 metric tons (40% of FY24 landfill waste) Completion of 134 energy efficiency projects across global operations Advancement of a large-scale solar Virtual Power Purchase Agreement (VPPA) with partners to support U.S. electricity demand decarbonization To access Donaldson's Fiscal Year 2024 Sustainability Report, visit Statements in this release regarding future events and expectations, such as forecasts, plans, trends and projections relating to the Company's business and financial performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are identified by words or phrases such as 'will likely result,' 'are expected to,' 'will continue,' 'will allow,' 'estimate,' 'project,' 'believe,' 'expect,' 'anticipate,' 'forecast,' 'plan' and similar expressions. These forward-looking statements speak only as of the date such statements are made and are subject to risks and uncertainties that could affect the Company's performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed. These factors include, but are not limited to, challenges in global operations; impacts of global economic, industrial and political conditions on product demand; impacts from unexpected events, including natural disasters; effects of unavailable raw materials or material cost inflation; inability to attract and retain qualified personnel; inability to meet customer demand; inability to maintain competitive advantages; threats from disruptive technologies; effects of highly competitive markets with pricing pressure; exposure to customer concentration in certain cyclical industries; inability to manage productivity improvements; inability to achieve commitments to ESG; results of execution of any acquisition, divestiture and other strategic transactions; vulnerabilities associated with information technology systems and security; inability to protect and enforce intellectual property rights; costs associated with governmental laws and regulations; impacts of foreign currency fluctuations; and effects of changes in capital and credit markets. These and other factors are described in Part I, Item 1A, 'Risk Factors' of the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2023. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law. The results presented herein are preliminary, unaudited and subject to revision until the Company files its results with the United States Securities and Exchange Commission on Form 10-Q. About Donaldson Company, Inc. Founded in 1915, Donaldson (NYSE: DCI) is a global leader in technology-led filtration products and solutions, serving a broad range of industries and advanced markets. Diverse, skilled employees at over 140 locations on six continents partner with customers––from small business owners to R&D organizations and the world's biggest OEM brands. Donaldson solves complex filtration challenges through three primary segments: Mobile Solutions, Industrial Solutions and Life Sciences. Additional information is available at
Yahoo
20-04-2025
- Business
- Yahoo
Powerhouse corporations secure rare energy deal that could reshape the grid: 'Decreases risk and increases cost-effectiveness'
A group of powerhouse companies — Cisco, Biogen, IDEXX Laboratories, and Waters Corporation — is making a bold move toward a smarter, more stable energy future. Together, they've secured more than 170 megawatts of affordable solar energy from two upcoming solar farms in Texas, according to Sustainability Roundtable. The deal, organized through the Net Zero Consortium for Buyers, uses a group-buying strategy known as a virtual power purchase agreement (VPPA) to lock in fixed energy pricing from the new solar projects. These kinds of joint purchases make it easier for businesses to reduce long-term energy risks without going it alone, and they're becoming a popular way to invest in clean energy while protecting the bottom line. Cisco took the biggest share, committing to 100 megawatts, while the others made smaller but still impactful purchases. The two solar farms, developed by global renewable firm X-ELIO, are expected to go live in 2027 and will generate around 367,000 clean energy certificates annually, helping each company shrink its air pollution footprint. This move is more than a win for clean energy — it's a signal that the clean economy is becoming the smart economy. By reducing exposure to price spikes and investing in long-term savings, these companies are showing how sustainability-focused businesses can drive lasting value. Deals like this also support job creation, strengthen the U.S. energy grid, and help make affordable power more widely available. It's the same trend we've seen across the country. Solar panel manufacturing has helped revive the local economy in Georgia, while the new Willow Rock Energy Storage Center is boosting grid reliability while supporting a transition to more affordable power in California. Would you want EV-charging roads installed in your town? Sign me up Depends how much it costs No way I'm not sure Click your choice to see results and speak your mind. While the ESG investing bubble may have burst for some, the momentum behind cleaner strategies hasn't slowed down. A study published in the Environmental Science and Technology journal has highlighted that renewable energy investments continue to outperform dirty energy, offering both environmental benefits and financial returns. Individuals can contribute to the clean energy movement by engaging in actions such as installing solar panels and taking advantage of tax incentives for energy-efficient home improvements. Director at Cisco Andy Smith said, "Joining other buyers enables us to spread our procurement across multiple transactions, diversifying our renewable energy portfolio in a way that decreases risk and increases cost-effectiveness." Sustainability Roundtable CEO James Boyle added, "[NZCB high-credit buyers] repeatedly demonstrate that economic and intellectual collaboration between the smartest companies can cause new clean energy at scale." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
16-02-2025
- Business
- Yahoo
US city signs unprecedented power deal: 'This is truly remarkable work'
Cambridge, Massachusetts, just signed the largest-ever virtual power purchase agreement by a U.S. city, Electrek reported. A VPPA allows a company or a local government to fund and benefit from clean energy produced elsewhere in the electrical grid. In this case, Cambridge is paying for power from the new Prairie Solar project in Champaign County, Illinois, which is set to begin generating electricity in the summer of 2026. Renewable company MN8 Energy will use the funds from this deal to build and operate Prairie Solar. It is being built near a former coal power plant, replacing dirty energy with clean energy. This is great news for residents, who will enjoy cleaner, safer air. Are you currently using solar power in your home? Heck yes No — but I would like to be No — I don't know much about it No — it's too expensive Click your choice to see results and speak your mind. In fact, buying clean energy at a distance means the project will have a more positive impact on the environment than if the solar farm had been built close to home. "Since the New England Grid is one of the cleanest in the country, and these projects are in grids slower to transition, they should reduce nearly twice the global greenhouse gas emissions than if the same projects were located in the greening New England grid," said Dennis Carlberg, chief sustainability officer at Boston University, per Electrek. "This is truly remarkable work that I hope others will replicate." It's also great news for the residents of Cambridge who participate in the Standard Green option in Cambridge's Community Electricity Program. When Prairie Solar comes online, this program will provide more than 55% green energy at a competitive and stable price. It already includes wind energy from an earlier VPPA. This fits into Cambridge's mission to reach net-zero emissions by 2050. In fact, the VPPA is a much more efficient way to achieve that goal than establishing a solar farm in the densely populated area. The city will now turn its attention to buildings and transportation, which contribute a large portion of its current planet-warming pollution. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
