Renewable Energy Certificates

What are Renewable Energy Certificates (RECs)?

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RECS are an environment commodity which provides economic incentives for electricity generation from renewable energy sources. RECS is awarded for every 1 Mega Watt-hour of electricity generated.

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National Action Plan on climate change (NAPCC) and EA (energy act) 2003 provides a roadmap for the increased shape of Renewable energy generation capacity in India. In this bid REC mechanic launched on 18th Nov 2010, it is supported by MNRE. Under EA 2003 every SERC sets targets for distribution companies to purchase a certain percentage of total required from Renewable energy sources. This target is referred to as Renewable purchase obliquation (RPO). To getting RPO and REC act as market pull incentive which demands renewable energy installations. REC also a national level market for Renewable energy generators to recover their cost.

  • RE generators
  • Sale of preferential tariffs
  • Obliqued parties
  • Electricity component
  • Distribution companies
  • REL
  • Obligated entity

Need for RECS –

  1. Fulfil RE deficit of other stores:- Renewable energy (RE) potential is not the same for all the stakes. So REC allows RE deficit shake to fulfil their
  2. Encourages RE capacity – Recessful implementation encourage Renewable energy generation in stores which have potential at REC economic incentives makes it profitable.
  3. Boost to the independent requires – Independent project out of action require can trade REC on power exchanges (REX or PXIL).
  4. Helps to receive climate change commitments – It will certainly also help in meeting our commitment towards Paris agreement which increasing the shape of non-forth fuel to 40% of total electricity generation capacity.

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