What is REC Mechanism?
Renewable Energy Certificate (REC) mechanism is a market based instrument to promote renewable energy and facilitate renewable purchase obligations (RPO)
Purpose of REC Mechanism?
REC mechanism is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the renewable purchase obligation (RPO).
REC and RE Generators
Cost of electricity generation from renewable energy sources is classified as cost of electricity generation equivalent to conventional energy sources and the cost for environmental attributes.
RE generators have two options:
i) either to sell the renewable energy at preferential tariff or
ii) to sell electricity generation and environmental attributes associated with RE generations separately.
The environmental attributes are exchanged in the form of Renewable Energy Certificates (REC).
There are two categories of certificates, viz., solar certificates issued to eligible entities for generation of electricity based on solar as renewable energy source, and non-solar certificates issued to eligible entities for generation of electricity based on renewable energy sources other than solar:
REC will be issued to the RE generators for 1 MWh of electricity injected into the grid from renewable energy sources.
For hand holding on REC Registration and Trading contact us at +91-99030-37609