The document discusses renewable purchase obligations (RPO) and renewable energy certificates (RECs) in India. It notes that RPO targets are set by state electricity regulatory commissions to mandate that state utilities procure a required amount of renewable energy. RECs represent the renewable attributes of 1 MWh of renewable energy generation. RECs are traded on energy exchanges and can be purchased by obligated entities like distribution companies to meet their RPO targets. The document outlines the REC mechanism, eligible participants, operational framework, trading process, and compliance procedure.

1. Presented By-
Vedant Sonkhiya
B.Tech(Energy Technology)L.LB.(IPR)

2. RE Scenario
Source- CEA

3. Potential of RE
 Source- MNRE

4. Overview of RPO & SPO
 NAPCC that aims at 15% renewable energy mix in overall Energy mix in India,
by 2020
 RPOs was initiated by CERC to mandate the State utilities procure the
power from RE sources ,section 86(1) e under EA act 2003
 RPO target are fixed by respective state electricity regulatory commission
 RPO are enforced on three categories of power consumers- Distribution
licensee, Open access consumer and captive consumers
 SPO is solar purchase obligation
 Every states is having different potential of renewable energy

5. Introduction to REC
 Renewable Energy Certificates (RECs) represent the attributes of electricity
generated from renewable energy sources
 Two products-the attributes embodied in the certificates and the commodity
electricity are sold or traded separately
 ONE REC represents that 1MWh of energy is generated from renewable
sources
 Expected to become the currency of renewable energy markets because of their
flexibility
 RECs are not subjected to the geographic and physical limitations of commodity
electricity
 Traded in Indian Energy exchange and Power exchange of India ltd

6. Obligated Entities
 Entities mandated to purchase a defined quantum of renewable energy of
their overall consumption are Obligated entities
 Obligated entities may either purchase renewable energy or can purchase
RECs to meet their Renewable purchase Obligation (RPO) set under
Renewable Purchase Obligation of their respective States.
 Following entities are obligated in the State:-
a. Distribution Licensees
b. Captive Consumers
c. Open Access users

7. REC

8. Eligible participants

9. Eligibility

10. Operational Framework

11. Trading of REC
 The price of REC would be determined in power exchange.
 REC would be traded in power exchange within the forbearance price and
floor price determined by CERC from time to time
 Floor Price : price has been determine in the basic min requirement for
insuring the viability of RE project set up to meet the RE target
 Forbearance price : Price has been derived based on the highest different
between cost of generation of RE technology and average power purchase
cost

12. Features of REC

13. REC Mechanism

14. Procedure

15. Procedure
 State Nodal Agency (SNA) authorizes or endorses the RE Generator and
recommends it for registration
 NLDC (Central Agency) registers their Generator as ‘Eligible Entity’ for its RE
Generation Project
 The electricity generated from RE project is injected into the grid and sold to
either a distribution licensee or open access consumer with whom it has contract
or sold through the power exchange
 Once the RECs are issued to the RE Generator (Eligible Entity), sale/purchase of
RECs amongst Eligible RE Generators and Obligated entities to be undertaken only
through Power Exchanges.
 The Obligated Entities purchase RECs through PXs and to surrender to SERC or
other agency as specified by SERCs as to meet their RPO.
 NLDC (REC Registry) maintains record of RECs sold and purchased
 Compliance Auditors to monitor and report the compliance of REC Regulations

16. REC- FEE & Charges

17. Update on REC

18. References
 Indian Energy Exchange
 MNRE
 CEA
 http://www.iexindia.com/pdf/media_kit/IEX_REC.pdf
 http://www.slideshare.net/ashishverma061/rec-a-overview