Renewable Energy Certificate (REC) represents the green attribute of electricity generated from renewable energy sources.

These attributes are unbundled from the physical electricity and the two products—the green attribute embodied in the form of a

certificate and the commodity electricity - are traded separately. One REC represents 1MWh of energy generated from renewable

sources. RECs is now positioned as the currency of renewable energy markets because of its flexibility and the fact that it is not

subjected to the geographic and physical limitations of the underlying commodity, electricity. The obligated entities purchase

RECs to fulfil their Renewable Purchase Obligation (RPO). There are two categories of RECs: Solar and Non-Solar.

What is Renewable Energy Certificate (REC)?

Procedure for Application of Issuance of Renewable Energy Certificate

ACCREDITATION (Through State Nodal Agency-SNA)

Through this process, the SNA authorises or endorses the renewable energy (RE) generator and recommends it for registration.

• Eligible generator can get accredited not before 6 months prior to the proposed date of commissioning.

• Accreditation Certificate is valid for 5 years from the date of accreditation.

• Separate applications required for separate projects

REGISTRATION (Through Central Agency - National Load Despatch Centre-NLDC)

Through this process, NLDC registers generator as ‘Eligible Entity’ for its RE generation project.

• Eligible entity can get registered not before three months prior to the proposed date of commissioning.

• Registration can only be done after receipt of the ‘Certificate of Accreditation’ from the concerned SNA.

• Registration is valid for five years from the date of registration.

ISSUANCE (Through NLDC)

• The metered electricity is recorded through energy accounting by State Load Despatch Centre (SLDC).

• Eligible entity to apply to NLDC for issuance of REC equivalent to the amount of electricity injected into the grid as certified

by the SLDC. The application is required to be filed within three months from the date of renewable energy generation.

• Application can be made on a fortnightly basis, i.e., on the 1st day of the month or on the 15th day of the month.

• NLDC issues RECs to Eligible Entity within 15 days as per SLDC and State Agency’s Energy Injection Report (EIR).

• RECs to be sold within 1095 days of issuance or else they lapse.

TRADING (Through Power Exchanges)

Once the RECs are issued to the Eligible Entity, sale/purchase of RECs is to be undertaken only through the Power Exchanges.

• Trading through a double-sided closed auction on the last Wednesday of every month.

• Call for bids from 13:00 Hrs to 15:00 Hrs on the auction day(T-day).

• Exchanges intimate details of maximum sale bids placed by each Eligible entity to NLDC by 15:30 Hrs .

• NLDC checks availability of RECs with the Eligible Entity by 16:00 Hrs.

• Post-confirmation from NLDC, Exchanges determine Market Clearing Price (MCP) and Market Clearing Volume (MCV)

and send the details of final cleared trades to NLDC for extinguishing of RECs traded by 17:00 Hrs.

REDEMPTION (Through Power Exchanges)

The obligated entities purchase RECs through Power Exchanges and submit them to the concerned SNAs or as specified by

respective SERCs as proof of RPO compliance. The NLDC maintains and records RECs sold, purchased and redeemed for

self-consumption in the REC registry. Captive Power Producers (CPPs) availing concessional/promotional transmission /

wheeling charges or banking facility or not meeting registration / project commission timelines as specified by CERC or

criteria as per Electricity Rules, 2005, will not be eligible to retain RECs for self-consumption against their RPO.

www.iexindia.com

RENEWABLE ENERGY CERTIFICATE [REC]

a. Become Member or Client (of a Member) of IEX

b. Register with NLDC

c. Start Buying and Selling RECs at IEX

Note: The existing Members and Clients of IEX are eligible to trade in the REC Market.

How to start?

Trading Day Last Wednesday of every Month

Market Clearing Double sided closed auction

Trading Time 1300-1500 Hrs

By 1530 Hrs Verification by Central Agency (NLDC) for Valid REC by cleared seller at IEX

By 1600 Hrs Central Agency confirms REC

By 1630 Hrs IEX finalises trade

By 1700 Hrs IEX informs buyer and Sell ers to Central Agency

By 1800 Hrs IEX raises Invoice (proof of REC trade)

Trading Timeline

Criteria for Renewable Energy Generator to be eligible for REC:

a. Grid connected

b. No preferential tariff from local distribution Licensees

c. Selling to local distribution licensees at Average Power Purchase Cost (APPC)

d. Selling to other licensee or open access consumer or through power exchange at a mutually agreed or market

determined price.

Buyers

Obligated Entities:

- Distribution Companies

- Open Access Consumers

- Captive Power Consumers

Sellers

Renewable energy generators like wind,

solar, small hydro, co-generation,

municipal waste, biomass/bio-fuel,

other MNRE approved sources.

Voluntary Entities:

- Individuals

- Corporates

- NGOs

Trading at IEX

RENEWABLE ENERGY CERTIFICATE

Non-Solar REC Market at IEX : A Snapshot

INDIAN ENERGY EXCHANGE LIMITEDUnit No. 3,4,5 and 6, Fourth Floor, TDI Centre, Plot No - 7, Jasola, New Delhi – 110025 | CIN: L74999DL2007PLC277039

Phone: +91-11-43004000 | Fax: +91-11-43004015 | Email: iex-bd@iexindia.com | www.iexindia.com

3,450+ Total Registered

Participants

740+ Eligible Entities

>63 Lac RECs Cleared in

FY 2018-19

>291 Lac RECs Cleared

since 2010

67% Market Share

/IndianEnergyExchangeLtdIEX @IEXLtd Download IEXApp on

2,690+Obligated Entities

(Open Access Consumers,

CPPs, DISCOMS)

KEY STATISTICSst[ As on 31 December, 2018]

*Pursuant to orders from Hon'able Supreme Court and CERC, the Power Exchanges did not trade in Solar RECs from May'17 to March'18.

Pri

ce (

Rs/

REC

)

Total Non-Solar Traded Volume in FY18: 92,40,720 RECsTotal Non Solar Traded Volume in FY19 (YTD): 23,56,532 RECs

3,64,820

32,39,142

Oct'18 Nov'18 Dec'18

3,78,417

81,5452,92,482

3,42,121

18,89,982

1,82,2543,90,158

20,79,799

1,36,979

3,23,6342,21,674

1,91,9882,91,588

2,44,401 2,95,010 3,55,657 2,95,601P

rice

(R

s/R

EC)

Total Solar Traded Volume in FY18: 88,533 RECsTotal Solar Traded Volume in FY19 (YTD): 39,60,742 RECs

88,533

6,44,151

2,88,0703,93,822

8,08,324

2,16,223

13,59,04588,533

*

Nov'18Oct'18 Dec'18

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

1,600

1,400

1,200

1,000

800

600

400

200

0