IEX shares slide over 4% after CERC rolls out VPPA framework
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Shares of Indian Energy Exchange (IEX) dropped 4.20% on Friday, hitting an intraday low of Rs 133.29, as investor sentiment weakened following new regulatory developments in the power sector. The decline followed the Central Electricity Regulatory Commission (CERC)’s introduction of a framework for Virtual Power Purchase Agreements (VPPAs), raising concerns about potential implications for trading activity on power exchanges. CERC has notified guidelines for VPPAs that allow large electricity consumers to meet their renewable energy obligations without physically purchasing green power. Under the framework, designated consumers can enter into bilateral agreements with renewable energy generators for a minimum tenure of one year. These contracts are non-tradable and non-transferable, according to a report by The Economic Times . VPPAs are financial arrangements that enable consumers to claim renewable compliance without taking physical del...