• Renewable Energy Certification

    • The owner of the REC has right to purchase renewable energy. The certificates can be sold or traded between buyers and the sellers
    • REC states that power produced from renewable energy projects can be sold separately from electricity commodity.
    • RECs can be sold separately and can be used by another party and a consumer receives only a certificate.
    • According to green power market, the electricity consumer has to buy green power products to reduce emission targets. RECs incentives net zero carbon emission by giving funds.
    • REC is provided with a unique number to match RECs to its current owners to avoid crime. Buyers can use third party survey to confirm their ownership between multiple parties.

  • Eligibility Criteria

    • According to preferential tariff the company should not have a power purchase agreement to sell electricity.
    • The company does not have the power to sell electricity according to preferential tariff agreement.
    • It can sell the electricity either.
    • To the distributor who has license to the area in which the eligible entity is located and the price should not exceed the pooled cost of power purchase.
    • Applicable to an open access consumer and bilateral contracts at a mutually agreed price or through power exchange price determined at the market.
    • A Captive consumer is eligible for the entire energy production from a specific power plant which includes self consumption to take part in the REC scheme and these captive customers should not propose to benefit in the form of concessional/ promotional transmission or wheeling charges, banking facility benefits and relinquishment of electricity taxes.
    • If a captive customer enjoys these benefits, then they are not eligible for three years in participating REC scheme.
    • A power purchase agreement parties also eligible at average power purchase cost or through a state regulated tariff agreement.
    • REC is issued only by RE generators and is valid for 365 days from the date of issuance of such certificate.

  • Basic procedure for REC issuance

    • Submission of Application for registration by the RE generator to CA which may be done online or physical form along with the determined non-refundable processing fee.
    • On receipt of application CA undertakes preliminary scrutiny which would take place within 6 working days from date of receipt of application.
    • On completion of the preliminary scrutiny, CA intimates records a submission in writing about the reasons for acceptance of rejection which generally takes place within 15 days from the application submission.
    • On verification, applicant has to pay one time registration fee and annual fee for the current financial year and submit the documents and proofs to the CA.
    • CA grants “Certificate for Registration” to the RE generator and assigns a specific registration number. Process of registration generally gets completed within 15 days.
    • After registration to RE generator is granted, the CA also intimates registration to the host State Agency (SA), host State Load Despatch Center (SLDC), the power and REC regulations.

PRICE TAGS

The band of prices of solar renewable energy certificates (RECs), which trades in power exchanges, have been lowered by the Central Electricity Regulatory Commission (CERC) to be traded on the energy exchanges. The CERC has lowered the floor and forbearance prices of solar RECs issued to the solar power developers.

As per the revised prices, the floor price has been reduced to Rs. 3,500 from Rs. 9,300, while the forbearance price has been reduced to Rs. 5,800 from earlier price of Rs. 13,400.

CERC encourages and has increased the allotment of certificates to the solar power developers. As per the news amendment, such projects will now be entitled for 2.66 RECs for each MWh of power that they produce. This amendment will be applicable till March 2017 after which the solar project will get one REC for every MWh of power.

The forbearance and floor price is determined by CERC (FY 2011-14)

Type Floor Price Forbearance Price
Solar 12000 17000
Non-Solar 1500 3900

The forbearance and floor price is determined by CERC (FY 2015-2017)

Type Floor Price Forbearance Price
Solar 3500 5800
Non-Solar 1500 3300

Fee structure for Accreditation, Registration and Redemption

Accrediation Amount
Processing Fees (one time) 5,000
Accreditation Charges (One Time) 30,000
Annual Charges 10,000
Revalidation Charge at the end of five (5) years 15,000
Registration Amount
Processing Fees (one time) 5,000
Revalidation Charge at the end of five (5) years 30,000
Insurance for REC Amount
Fees per Certificate 10

GREEN TAG OBLIGATION

The idea is to promote electricity supply from eligible renewable source and obligation to meet the requirements of the entities. According to the norms certified renewable energy generators can purchase renewable energy or may purchase RECs to meet their Renewable purchase obligation (RPO) of the respective state.

According to the Indian electricity Act -2003
In India the legislative council has passed an electricity act in 2003 which includes the necessities for applying renewable energy

Section 86 (1) (e): Promote cogeneration and generation of electricity from renewable sources of energy by providing, suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee.

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