Overseas Operation - India - RECs

A Renewable Energy Certificate represents the property rights to the social, environmental and other non-power qualities of renewable energy generation.

The associated benefits and attributes of an REC can be sold separately from the physical electricity. RECs allow for the flexibility of acquiring green power varied geographical area. RECs also allow for the ability to use the attributes to any facility of choice.

This is a market based instrument that facilitate compliance with RPO (Renewable Purchase Obligations) and helps promote renewable energy. This mechanism strives to address the mismatch that occurs between the availability of Renewable Energy resources in the State and of the requirement of Obligated Entities to meet the RPO.

There are two types of RECs available: Solar RECs and Non-Solar RECs.

1 REC = 1 MWh

Revenue for the RE generator includes that from the sale of electricity and from the sale of environmental attributes that are in the form of RECs.

A generating company that has entered into a PPA for the sale of electricity at a preferential tariff rate cannot be eligible for an REC if the PPA is terminated early. It can be eligible for participating in the REC three years after the date of termination of the agreement or until the scheduled date of expiration, whichever occurs earlier.

Captive Power Plants that are based on renewable energy are eligible for the entire energy that is generated from the plant, which includes self-consumption, if that CPP does not propose to avail any benefit in the form or promotional/concessional transmission or wheeling charges, waiver of electricity duty, or banking facility benefit.

If the CPP gives up the benefits of concessional transmission or wheeling charges, banking facility benefit, and waiver of electricity duty, the CPP can become eligible for REC participation after 3 years from the date of forgoing the benefits.

"Banking Facility Benefit" refers to the CPP having the benefit of utilizing the banked energy at any time, which includes peak hours.

One REC remains valid for 365 days after the date of issuance.

RECs are only issued to RE generators only

There are two options that are available:

1. Sell the electricity generation and environmental attributes associated with RE Generation separately; OR
2. Sell the renewable energy at preferential tariff

Grid connected RE technologies that are approved by the MNRE

RECs would be exchanged only in a CERC approved power exchange

Those RE generators that can fulfill the eligibility requirements can apply for accreditation for the State Agency. Once the RE generator has successfully acquired accreditation, they then can apply for registration into the Central Agency. Then after successful registration, the entity can then obtain the REC through the issuance of REC process.

The concerned SERC can have the Obligated Entity deposit into a separate fund that would allow to purchase the shortfall of REC at forbearance price. However, the Obligated Entity can approach the Commission if there is a genuine difficulty in complying with the RPO due to non-availability of certificates, of which the compliance requirement may be carried forward for another year.

Since the RE CPP would be gaining the benefit of the waiver of electricity duty, it would not be eligible under the REC. If the CPP declines on its own, then it can be eligible for REC participation after three years has passed from the date of giving up such benefits. The condition for participation will not be applicable if the benefits to the CPP in the form of concessional transmission or wheeling charges, banking facility benefits and waiver of electricity duty are withdrawn by the State Electricity Regulatory Commission and/or the State Government.

These types of RE projects are eligible under REC

No, only the net generation of any RE generation project is eligible for the issuance of the REC

The RE Generator would not be eligible.