Issuance of RECs

issuance Accreditation Registration Issuance Trading Redeem Compliance

Step One : Accreditation

Within this step, the State Nodal Agency (SNA), either endorses or authorizes the RE Generator and recommends it for registration.

arrow Eligible Generators can get accreditation not before 6 months prior to the proposed date of commission.

arrow Accreditation Certification is valid for 5 years from the date of accreditation.

arrow There is a separate application for separate RE Generation projects

arrow RE Generation projects need a minimum generation of 250kW

Step Two : Registration

In this process, the NDLC (National Load Dispatch Center) registers the Generator as an "Eligible Entity" for the RE Generation Project

arrow Eligible Generators are able to register 3 months before the proposed date of commission.

arrow Once the Certificate of Accreditation is received, then registration can be done for the RE Generation Project from the concerned State Agency.

arrow Registration is only valid for 5 years from the date of Registration

Step Three : Issuance of REC

arrow RE projects generate electricity that is either sold to a distribution licensee, to an open access customer whom has a contract or sold through the power exchange. The metering of quantum of Renewable Energy that is injected into the grid is approved/recorded through energy accounting by SLDC (State Load Dispatch Center)

arrow Those RE Generators that are eligible can apply to the NLDC in order to issue the RE Certificates that are equal to the amount of electricity that is injected into the grid as certified by the SLDC. Applications must be completed withing 3 months from the date that the energy was generated.

arrow Applications can be filed on the 1st or 15th of the month

arrow NLDC issue the RECs to the Eligible RE Generators within 15 days as per the SLDC and State Agency's generation report.

arrow RECs are to be sold within 365 days of issuance otherwise they will lapse.

Step Four : REC Trading at the Exchange Platform

Once RECs are issued to the Eligible Entity (RE Generator), purchase/sale of the RECs amongst Obligated Entities and Eligible RE Generators can occur only through the Power Exchange and the Indian Energy Exchange.

arrow Trading is done through Closed double-sided auction on the last Wednesday of every month

arrow Call of bids from 13:00 to 15:00 Hrs on the day of the auction

arrow PXs to intimates details of max sale bids places by each Eligible RE Generator to NLDC by 15:30 Hrs.

arrow NLDC checks the availability of RECs with the Eligible Entity by 16:00 Hrs

arrow Post-Confirmation from the NLDC. PXs determine Market Clearing Price and Market Clearing Volume. These details of the final cleared trades to NLDC for extinguishing of the RECs sold into the records by 17:00 Hrs.

Step Five : Redeeming/Surrendering of RECs

Obligated Entities purchase RECs through Power Exchanges and surrender to SERC or other agencies as specified by the SERCs in order to meet their RPO. REC Registry (NLDC) maintain the records of the RECs purchase and sold.

Step Six : Compliance Reporting

Compliance Auditors monitor and report the compliance of REC Regulations.