Renewable Energy Certificates (REC)<br /><ul><li>REC is deemed as certificate of power generated from Renewable Energy sources.
1 REC = 1 Mega Watt hour of renewable energy generated.
Can be sold or traded to meet mandatory RPO targets set by State Electricity .
Regulatory Commissions for renewable energy purchases by utilities/distribution companies/ Obligated entities.
Exchanges identified for REC trading- Indian Energy Exchange & Power Exchange of India.
REC would be divided into two categories:</li></ul>Solar Certificates<br /> Non-Solar Certificates<br />
Eligibility Criteria<br /><ul><li>All renewable energy generators already NOT having PPA with the distribution licensees for contracted quantum.
RE generator selling electricity generated either :</li></ul>to the distribution licensee of the area in which the eligible entity is located, at a price not exceeding the pooled cost of power purchase of such distribution licensee; or <br />to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at a market determined price;<br />eligible CPP utilizes electricity for self consumption <br /><ul><li>All RE based captive power producer shall be eligible for their entire energy generation including self consumption.</li></li></ul><li>Conceptual framework<br />Distribution Utility at a price not more than average pool price<br />Sale at Preferential tariff<br />Obligated Entities<br />Third party sale on mutually agreed price<br />RE Generator<br />Sale through power exchanges<br />Electricity Component<br />Sale in REC framework<br />Obligated Entities (Sale through power exchanges )<br />Renewable Component (REC)<br />
Pricing of REC<br />CERC has finalized the floor and forbearance price of REC based on:-<br /><ul><li> Variation in cost of generation of different renewable energy technologies ,falling under solar and non-solar category, across States in the country.
Variation in the Pooled Cost of Purchase across States .
Expected electricity generation from renewable energy sources including:-</li></ul>i. expected renewable energy capacity under preferential tariff<br />ii. expected renewable energy capacity under mechanism of certificates;<br /><ul><li>Renewable Purchase obligation targets set by State Commissions. </li></li></ul><li>Cont…<br />CERC has given the following price range for Solar and non-solar certificates ( applicable up to march2012):<br />These prices are calculated as under:<br />Forbearance Price = Maximum (Preferential Tariff- Average Power Pool Cost)<br />Floor Price = Market Equilibrium Price (Minimum requirement for project viability of RE technologies - Average Power Pool Cost)<br />.<br />