MADE BY –NAMAN SUKHIJAINTERN (27 May 2015 – 11 July 2015)INDIAN GREEN BUILDING COUNCILCII-GREEN BUSINESS CENTREnamansukhija@gmail.com

RENEWABLE ENERGY CERTIFICATE

BRIEF GUIDE

Renewable Energy Certificate

Instruments to promote the use of renewable energy.

To address the mismatch between availability of

Renewable Energy sources and the requirement of the

obligated entities to meet their Renewable Purchase

Obligation.

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Renewable Purchase Obligation is a mandatory condition for

Obligated Entities to purchase a percentage of the total

power consumption.

Obligated Entities are the distribution licensees and

consumers owning the captive power plants.

One Renewable Energy Certificate (REC) is treated as

equivalent to 1 MWh.

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Types of Renewable Energy Certificate

REC

Solar RECs Solar energy as renewable

energy source

Non-Solar RECS

Renewable Energy Source other than Solar

Renewable Energy Certificates are important because they provide flexibility to the buyers -

• In procuring green power across a diverse geographical area.

• In applying the renewable attributes to the electricity use at a

facility of choice

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Energy is generated by various available technologies and

fuel resources.

The generated electricity is transferred to consumers in a

complex grid system using wires and infrastructure.

The electricity reaching to the consumer is same in every

aspect whatever the source may be. This makes it

impossible for an individual or an organisation to identify

the source by which the energy was generated.

REC helps the consumers to address this problem and

assure that the energy received by them is generated

through a renewable source.

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Total Installed Renewable Energy in India

TOTAL = 33,791.74 MW

22,465.03

3,062.68

3,990.83

1,365.202,800.35

107.58

TOTAL INSTALLED CAPACITY (MW)(31 DECEMBER 2014)

WIND POWER SOLAR POWER

SMALL HYDRO POWER BIOMASS POWER

BAGASSE COGENERATION WASTE TO POWER7

Month, Year Opening

Balance

(A)

REC Issued

(B)

No. of REC Redeemed Total

E=(C+D)

Closing

Balance

(F=A+B-E)RECs

Redeemed

through Power

Exchanges

(C)

RECs retained

by RE

Generators

(D)

Jul, 2014 7836780 1485060 38442 - 38442 9283398

Aug, 2014 9283398 702700 51844 - 51844 9934254

Sep, 2014 9934254 859795 24013 25000 49013 10745036

Oct, 2014 10745036 1074046 74381 20000 94381 11724701

Nov, 2014 11724701 731207 197162 25457 222619 12233289

Dec, 2014 12233289 1087197 337782 60400 398182 12922304

Jan, 2015 12922304 411590 569149 46085 615234 12718660

Feb, 2015 12718660 593085 792356 57747 850103 12461642

Mar, 2015 12461642 453091 723967 13543 737510 12177223

Apr, 2015 12177223 810257 64134 8563 72697 12914783

May, 2015 12914783 821264 339768 2879 342647 13393400

June, 2015 13393400 1420931 185493 45627 231120 14583211

Total: 24894035 10005523 305301 10310824

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Eligibility CriteriaA generating company engaged in generation of electricity from renewable energy

sources shall be eligible for participation under REC scheme if it fulfils the

following conditions-

It does not have any Power Purchase Agreement to sell electricity, with the

obligated entity for the purpose of meeting its renewable purchase obligation, at

a tariff determined under section 62 or adopted under section 63 of the Act by

Appropriate Commission:

Provided that in case of renewable energy sources based co-generation plants,

the connected load capacity as assessed or sanctioned by the concerned

distribution licensee ,shall be considered as the capacity for captive

consumption for the purpose of issues of certificates, irrespective of the

capacity of such plants covered under the power purchase agreement.10

It sells the electricity generated either

• To the distribution licensee of the area in which the

eligible entity is located, at the pooled cost of power

purchase of such distribution licensee as determined

by the Appropriate Commission.

• To any other licensee or to an open access consumer

at a mutually agreed price, or through power

exchange at market determined price.

All Renewable Energy based captive power producer

shall be eligible for their entire energy generation

including self consumption.

It has obtained accreditation from the State Agency; 11

• Accreditation by State Agency

• Registration by Central Agency

• Issuance of RECs by Central Agency

• Redemption of RECs

Operational Framework

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• Three months from the date of generation.Application

• Fifteen days from the date of applicationIssuance

• 365 days from the date of issue or exchange by way of sale whichever is earlierValidity

• Registration, Annual and Transaction FeesFees

• Membership Charges

• Transaction Charges

Charges at Exchange

REC - Timeline, Fees and Charges

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S.N. Fee and Charges

towards Accreditation

Amount in ₹

1 Application Processing

Fee (One Time)

5,000

2 Application Processing

Fee (One Time)

30,000

3 Annual Charges 10,000

4 Revalidation Charge at the

end of five (5) years

15,000

Accreditation Charges

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S.N. Fee and Charges

towards Registration

Amount in ₹

1 Application Processing

Fees(One Time)

1,000

2 Registration Fees (One

Time)

5,000

3 Annual Charges 1,000

4 Revalidation Charge at

the end of five years

5,000

S.N. Fees and Charges

towards Issuance of

REC

Amount in ₹

1 Fees per Certificate 10

Registration Charges

Issuance Charges

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18This is a general idea of REC. Original REC may vary from the picture showed above.

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