Honourable Central Electricity Regulatory Commission (CERC) has been very active all throughtout the year for the implementation of REC mechanism in India. The Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation were notified and thereafter had its first amendment also.
As part of the National Mission on Climate Change, a policy to implement Renewable Purchase Obligation (RPO) is being put in place by the Central Electricity Regulatory Commission. The new policy will require Electricity Distributors, large Captive Consumers and large Open Access Consumers to purchase a certain percentage of their total electricity needs from renewable sources. Renewable Energy Certificates: Similar to Carbon Credits Similar to the Carbon Credit Market, a market for meeting the RPO requirements is in the process of being set up in India. Just like at the international level, companies that do not meet their emission reduction targets can purchase Carbon Credits from the market, similarly, Electricity Distributors in India that do not buy the percentage of renewable energy required by law, will have the option to fulfil their obligation by purchase of Renewable Energy Certificates (REC). RECs will be traded at power exchanges in India. Additional Source of Revenue For renewable energy producers – wind farms owners, biomass power plants, small hydro projects, etc, RECs present a very valuable (more…)