Renewable Energy Certificate (REC) Mechanism

A) Programme Details

Maharashtra Electricity Regulatory Commission (MERC) has declared (Renewable Purchase Obligation, Its Compliance and Implementation of REC Framework) Regulation, 2016 vide its order dated. 30 March 2016. For implementation of this regulation declared MEDA as a State Agency in Maharashtra State. As per this regulation, Obligated Entity (Distribution licensees, grid connected Captive Generating plant and Open access Consumers has to purchase minimum level of renewable energy out of the total consumption by them.It is a market based instrument to promote renewable energy and to address the mis-match between available RE sources and the requirement of the obligated entities to meet their renewable purchase obligations

For meeting the RPO targets Purchase of renewable energy certificate is one of the options for obligated entities. Obligation to purchase electricity generation based on solar as RE source can be fulfilled by purchase of solar certificates only. Obligation to purchase electricity generation based on non-solar as RE source can be fulfilled by purchase of non-solar certificates only. Procurement of REC’s issued for RE generation outside the State of Maharashtra as well as REC’s issued for renewable energy generation within the State of Maharashtra shall be considered as an eligible instrument for the purpose of RPO compliance. Procurement of REC’s issued for RE generation outside the State of Maharashtra as well as REC’s issued for renewable energy generation within the State of Maharashtra shall be considered as an eligible instrument for the purpose of RPO compliance. Others details of REC can be viewed from MERC website www.recregistryindia.nic.in


Significant Characteristics of the REC Framework  

  • Maharashtra Electricity Regulatory Commission vide its order dated. 01.07.2010 has designated Maharashtra Energy Development Agency (MEDA) as a State Agency to undertake functions as envisaged in MERC (Renewable Purchase Obligation (RPO), its Compliance and REC Framework Implementation) Regulations, 2010.
  • MEDA as a State Agency will give REC Accreditation only to RE Generators. 
  • There will be a Central Agency designated by the Central Commission i.e. National Load Dispatch Centre (NLDC) for registration of RE generators participating in the scheme.
  • The RE generators will have two options - either to sell the renewable energy at preferential tariff fixed by the concerned Electricity Regulatory Commission or to sell the electricity generation and environmental attributes associated with RE generation separately.
  • On choosing the second option, the environmental attributes can be exchanged in the form of REC.
  • The Central Agency NLDC will issue the REC to RE generators.
  • The value of REC will be equivalent to 1MWh of electricity injected into the grid from renewable energy sources.
  • The REC will be exchanged only in the Power Exchanges approved by CERC within the band of a floor price and a forbearance (ceiling) price to be determined by CERC from time to time.
  • The distribution companies, Open Access consumer, Captive Power Plants (CPPs) will have option of purchasing the REC to meet their Renewable Purchase Obligations (RPO). Pertinently, RPO is the obligation mandated by the State Electricity Regulatory Commission (SERC) under the Act, to purchase minimum level of renewable energy out of the total consumption in the area of a distribution licensee.
  • There will also be compliance auditors to ensure compliance of the requirement of the REC by the participants of the scheme.

 

On national level REC mechanism has been started in November 2010. Accordingly MEDA received applications from RE generators for getting accreditation to their projects. MEDA in first stage scrutinize the application & enclosures submitted by RE generator. In second stage carry out field inspection & confirm the eligibility of project and after that gives approval to concern RE project for accreditation. 

B) Achievements:- Status of RE projects accredited & Registered under REC mechanism from FY 2010-11 to FY 2015-16 is furnished as under -

Year

RE projects accredited

RE projects Registered

 

Nos.

Capacity in MW

Nos.

Capacity in MW

2010-11 to 2015-16 (Till November, 2016)

446

1159.37

406

1027.349

 

C) Frequently Asked Question

D) Important website links:

The detailed procedures for Accreditation, Registration, Issuance and Redemption of REC can be downloaded from CERC/NLDC (POSOCO) websites:  www.cercind. gov.in www.nldc.in , www.recregistryindia.nic.in