The Renewable Energy Certificate (REC) mechanism in India aims to address the incompatibility between the obligatory entities and requirements of the Recovery Point Objective (RPO) policy and create a national market for the recovery of renewable energy installation costs. The REC is expected to encourage potential states to increase renewable energy capacity.
Validity period of certificates: 1095 days after issuance, increasing irregularly.
Issuing body: Central Agency
Issuing region: India
Number of certificates: 75,679,751 (from Jan. 01, 2021 to Dec. 20, 2021)
Calculation method: Calculate the power generation from the power generator side and issue the certificate.
Certificate tracking unit: State Load Despatch Centre (SLDC)
The REC operation process includes four phases: accreditation, registration, issuance, and redemption.
Renewable energy project accreditation procedure: To simplify the interstate accreditation process, the Central Agency has developed a demonstration process for renewable energy project accreditation for national organizations. The project shall be accredited by relevant state departments and is suggested to register as a project of Central Agency.
Registration procedure for the renewable energy generation facility: Once certified, the renewable energy generator will submit the registration application to the Central Agency. The Certificate of Registration will be issued to applicants after the Central Agency verifies the application and other required documents. After registration, applicants are eligible to participate in the power generation market the moment they receive a Certificate of Registration.
REC issuance procedure: The Central Agency issues the REC to the power generation facility according to the Energy Injection Report (EIR) certified by the SLDC and applications submitted by the renewable energy power generation facility.
REC redemption procedure: The Central Agency will redeem and extinguish the RECs on first-in-first-out basis after trading with the power exchange.
Operation Cycle of Renewable Energy Certificate of India
Central Electricity Regulatory Commission (CERC) has approved two qualified energy trading platforms: the Indian Energy Exchange (IEX) and the Power Exchange of India (PXIL). Purchasers can trade on the last Wednesday of each month.
The official certificate price has not been announced, but the Central Electricity Regulatory Commission (CERC) has stipulated the floor price and ceiling price of the certificate, which ranges from 0 Rs./MWh to 1,000 Rs./MWh.
- Renewable Energy Certificate Registry of India
- Report of REC mechanism
- TIGR Registry Procedures (Aug. 2018)