Overview of RENEWABLE PURCHASE OBLIGATION (RPO) & RENEWABLE ENERGY CERTIFICATE (REC) Framework & status in INDIA Presentation by Sanjeevjain Additional Director CREDA ,RAIPUR E mail- email@example.com
Key Objectives for Introduction of REC Mechanism 2
Create competition among different RE technologies .
Development of all encompassing incentive mechanism .
Reduce risks for local distributor by limiting its liability to energy purchase .
Concept of REC Mechanism in India 3 At Tariff Determined by Regulatory Commission Electricity Renewable Energy Distribution Company Existing Mechanism REC Bilateral agreement (de-regulated) OA / Trader Distribution Company Electricity Avg. PP Cost of Host Utility (regulated) REC Mechanism Renewable Energy Obligated Entity (Buyer) Market Rate as per Power Exchange REC
Entities involved in REC Mechanism operation Institutional Framework
All renewable energy generators already NOT having PPA with the distribution licensees for contracted quantum.
RE generator selling electricity generated either :
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 to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at a market determined price; eligible CPP utilizes electricity for self consumption
All RE based captive power producer shall be eligible for their entire energy generation including self consumption.
Conceptual framework Distribution Utility at a price not more than average pool price Sale at Preferential tariff Obligated Entities Third party sale on mutually agreed price RE Generator Sale through power exchanges Electricity Component Sale in REC framework Obligated Entities (Sale through power exchanges ) Renewable Component (REC)
Accreditation & Registration Process Verify Accreditation Application Eligible Entity State Agency SLDC Intimation Confirmation Confirmation Central Agency Power Exchange Intimation Application
Issuance of REC Process State Agency Verification Pre Condition Regular Injection SLDC Power Exchange Central Agency Verify before Issuance Application Issuance Intimation For Meter Reading Apply for sale of REC Eligible Entity SLDC Joint Meter Reading
REC Trading RPS Obligated entities 1 RE Generators 1 Electricity to Grid Electricity from Grid 4 REC purchase agreement/ trading 5 Issuance of REC 1 Central Agency- NLDC Redemption of REC 6 2 Energy Accounting Application to issue REC Compliance reporting 3 Confirmation of Energy Accounting 7 SLDC Monitoring Committee of each State Quarterly Reporting
Redemption Process Eligible Entity Apply for Sale of REC RPO Purchase Obligated Entity SERC Power Exchange Intimation of Sale Intimation of Sale Central Agency State Agency
Pricing of REC CERC has finalized the floor and forbearance price of REC based on:-
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:-
i. expected renewable energy capacity under preferential tariff ii. expected renewable energy capacity under mechanism of certificates;
Renewable Purchase obligation targets set by State Commissions.
Cont… CERC has given the following price range for Solar and non-solar certificates ( applicable up to march2012): These prices are calculated as under: Forbearance Price = Maximum (Preferential Tariff- Average Power Pool Cost) Floor Price = Market Equilibrium Price (Minimum requirement for project viability of RE technologies - Average Power Pool Cost) .