Renewable Energy Certificate Mechanism in
India
By
Minaxi Garg
DGM(NLDC)
May 04, 2011
Outline of the Presentation
 Overview of RE in India
 Legal & Regulatory Framework
 Salient Features of REC Mechanism
 REC Procedures
 REC Market Status
 Way Forward
Potential of Renewable Energy in India (MW)
Source
Potential
Installed Capacity
Wind
45000
14157
Biomass
17000
997
Small Hydro (< 25 MW)
15000
3042
Co-generation- Bagasse
5000
1667
Waste
2700
72
Solar
> 100,000
38
Source : MNRE
Installed Renewable Generation Capacity
Biomass Power
<1% 5%
16%
(Agro residues)
Wind Power
8%
Small Hydro Power
70%
(up to 25 MW)
Cogenerationbagasse
Solar Power
Total Renewable Installed Capacity ~11% of All India Installed Capacity
Contributes about 4% of total Electricity Generation
4/13/2015
The Impediments
• Very high capital cost – leading to expensive
generated
electricity.
• Renewable resources though richly endowed, are unevenly
distributed across the country.
NLDC
5
Unevenly Distributed Renewable Resources
SOLAR ENERGY MAP OF INDIA
WIND ENERGY MAP OF INDIA
Electricity Act, 2003 : Enabling Provisions
• National Electricity Policy to aim for optimal utilisation of
resources including renewable resources.
• Tariff regulations of Commissions to be guided by promotion of
generation of electricity from RE sources.
• SERCs to specify Renewable Purchase Obligations (RPOs).
• Regulatory Commissions required to promote the development
of power markets.
NLDC
7
Renewable Purchase Obligations : Potential
Problems
• SERCs of those states, in which RE potential is not significant
are constrained from specifying higher RPOs.
o DERC has fixed RPO of 1%.
o MPERC has fixed RPO of 10%, actual achievement < 1% .
• SERCs of those states, in which the RE potential is very high
(Rajasthan, Tamil Nadu etc.) specified higher RPOs. Though
significant headroom is available in these states for enhancing
the RPOs, expensive renewal electricity becomes a constraint.
NLDC
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CERC REC Regulation dated 14/01/10
The Central Electricity Regulatory Commission
(Terms and Conditions for recognition and issuance of
Renewable Energy Certificate For Renewable Energy
Generation)
Regulations, 2010
BIO MASS
BIO MASS
SOLAR
SOLAR
GREEN
ATTRIBUTE
RENEWABLE
ENERGY
CERTIFICATE
GEO THERMAL
RENEWABLE
ENERGY
WIND
SOLAR
CERTIFICATE
NON-SOLAR
CERTIFICATE
ELECTRICITY
SMALL HYDRO
HYDRO
CERC REC Regulation, 2010 – Conceptual Framework
RE Generation*
Sale at
Preferential
Tariff
Electricity
Component
REC Component
Obligated Entities
Distribution Company
/ Third Party Sale/
Power Exchange
Obligated Entities /
Voluntary Buyers
* Self consumption by CPPs based upon renewable generation are eligible for RECs
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Salient Features of REC Mechanism
RE Generator
Grid
Connectivity
Trading
REC
State
Agency
1 MWh
Central Agency
Entities involved to Operationalise REC Mechanism
Central

Forum of Regulators

Central Electricity Regulatory Commission

Central Agency (National Load Despatch Centre)

Power Exchanges

Compliance Auditors
State

State Electricity Regulatory Commission

State Load Despatch Centre

State Agencies

Eligible Entities

Obligated Entities
Regulatory Framework in HP
• HPERC (Renewable Power Purchase Obligation and its
Compliance) Regulations, 2010 dated 26 May, 2010.
• Applicable to
– the distribution licensee;
– any other person consuming electricity– (i) generated from conventional Captive Generating
Plant having capacity of 1 MW and above for his
own use; and/or
– (ii) procured from conventional generation through
open access third party sale.
Regulatory Framework in HP
Defined minimum percentages
Year
Minimum Quantum of purchase (in %) from renewable
sources (in terms of energy in kWh) of total
consumption
Total
(2)
Non -Solar
(3)
Solar
(4)
2010-11
10.0%
10 %
0%
2011-12
11.1%
11%
0.1%
2012-13
12.1%
12%
0.1%
(1)
Regulatory Framework in HP
• REC – Valid instrument for RPO Compliance
• State Agency to submit quarterly status to the
Commission
– compliance of renewable power
obligation by the obligated entities
purchase
• Every Captive and Open access consumer(s) to
submit RPO Compliance
– on yearly basis on or before the 30th April to the
State Agency
Regulatory Framework in HP
• Consequences of Default :
– Commission may determine on the basis of the
shortfall in units of RPO and the forbearance price
decided by the Central Commission
– Separate fund
• Utilized for purchase of RECs
• partly for development of transmission/ sub transmission
infrastructure for evacuation of power from generating
stations based on renewable energy sources
– In case of non availability of RECs – Carry Forward
REC- Detailed Procedures
Procedure for ACCREDITATION (Through State nodal
Agency)
Procedure for REGISTRATION (Through Central Agency
NLDC)
Procedure for ISSUANCE (Through Central Agency
NLDC )
Procedure for TRADING & REDEMPTION at Power
exchanges
REC Fees & Charges
Forbearance Price
Non Solar REC
( / MWh)
3,900
Solar REC
( / MWh)
17,000
Floor Price
1,500
12,000
Accreditation Charges
S.N.
1
2
3
4
Fee and Charges towards Accreditation
Amount in
Application Processing Fees (One Time)
Accreditation Charges
(One Time)
Annual Charges
5,000
30,000
Revalidation Charge at the end of five
(5) years
15,000
10,000
REC Fees & Charges
Registration Charges
S.N.
Fee and Charges towards Registration
Amount in
1
Application Processing Fees (One Time)
1,000
2
Registration Charges
5,000
3
4
Annual Charges
Revalidation Charge at the end of five (5) years
(One Time)
1,000
5,000
Issuance Charges
S.N.
1
Fee and Charges towards Issuance of REC
Fees per Certificate
Amount in
10
Step Wise Schematic Description of Procedure for
Accreditation
Verification Prior
to Accreditation
2
1
3b
Eligible Entity
Application for
Accreditation
3a
Confirmation of
Accreditation
State Agency
Intimation of
Accreditation
SLDC
Intimation of
3c
Accreditation
Central Agency
Application for availing Accreditation by Generating Co. to the Host SA
Application shall contain details of Owner/Operator, Generating Station , Metering,
Connectivity , Statutory, General , fees & charges, Declaration
Separate Application for each RE Generation Project
Schematic Description of Procedure for
Registration
Eligible Entity
State Agency
3b
Intimation of
Application for
Registration
SLDC
Registration
3c
Intimation of
1
Registration
Central Agency
Confirmation of
3d
Registration
3a
Power Exchange(s)
Verification
Prior to
Registration
2
Intimation of
Registration
Information to be furnished by the applicant
Owner Details, RE Generating Station details, Certificate of Accreditation
Commissioning Schedule, Details of Fee & Charges, Declaration
Schematic Description of Procedure for
Issuance
Intimation of
Issuance
State Agency
5b
2
3
SLDC
Regular Injection
Report
Verification
Pre-Condition
Central
Agency
Intimation of Meter
Reading
Issuance of
REC
4c
4b
1
Application for
Issuance
Distribution
Licensee
4a
Eligible Entity
Joint Meter
Reading
5a
Schematic Description of Procedure for Redemption
Central
Agency
Verification
Conditions
(By 15:30)
Eligible
Entity
Offer for Sale
13:00 to 15:00 hrs
1a
2
Confirmation
Of REC validity &
quantity
(by 16:00)
Bid for Purchase
13:00 to 15:00
Power
Exchange(s)
Intimation of Trade results
For Extinguishing REC 3
(By 17:00)
Central
Agency
1b
Market Clearance
(Volume & Price)
4
Reports
Obligated
Entity / Buyer
Home Page: www.recregistryindia.in
REC Regulations by States & Declaration of State Agencies
Status till Date
• Accreditated RE Generators ------- 60
• Registered RE Generators ------------ 28
• RECs Issued------------------------------- 5035
• RECs Redeemed------------------------- 424 + 260
Accreditation Details
Non Solar/ गैर सौरऊर्जा
Wind
Small Hydro
Bio Mass
Bio Fuel Cogeneration
Urban & Municipal Waste
Geothermal
Total/ कुल
Solar/ सौरऊर्जा
Solar Thermal
Solar PV
Total/ कुल
Capacity/ क्षमतज (MW)
159.05
38
99.5
77
0
0
373.55
Capacity/ क्षमतज (MW)
0
0
0
संख्यज
36
9
8
7
0
0
60
0
0
0
Accredited RE Generators : 373.55 MW
State wise : As on 02.05.2011
3%
12%
8%
J&K
Gujarat
Chhattisgarh
4%
1%
66%
6%
Rajasthan
Haryana
Tamil Nadu
Maharashtra
Accredited RE Generators : 373.55 MW
Source wise : As on 02.05.2011
8%
21%
44%
Wind
Biomass
Bagasse
SHP
27%
Registration Details
Non Solar/ गैर सौरऊर्जा
Capacity/ क्षमतज (MW)
Wind
संख्यज
85.25
13
Small Hydro
28
7
Bio Mass
70
6
Bio Fuel Cogeneration
23
2
Urban & Municipal Waste
0
0
Geothermal
0
0
206.25
28
Total/ कुल
Solar/ सौरऊर्जा
Capacity/ क्षमतज (MW)
Solar Thermal
0
0
Solar PV
0
0
0
0
Total/ कुल
Registered RE Generators : 206.25 MW
State wise : As on 02.05.2011
3.57% 3.57%
3.57%
10.71%
3.57%
Gujarat
Chhattisgarh
Haryana
Maharashtra
Tamil Nadu
J&K
75.00%
Registered RE Generators : 206.25 MW
Source wise : As on 02.05.2011
11.15%
41.33%
Wind
Small Hydro
Biomass
Bio Fuel
Cogeneration
33.94%
13.58%
Month-wise REC Report
Month/
Year
Opening
Balance
REC
Issued
REC
Redeemed
Closing
Balance
March,
2011
0
532
424
108
April, 2011
108
4503
260
4351
REC Trading
Trade
Date
Buy Bid
Sell Bid (No.
(No. of
of
certificates) certificates)
MCP (Rs. /
Certificate)
IEX
PXI
MCV (No.
of
certificates)
31st
March
2011
70701
424
3900
2225
424
27th
April
2011
260
4611
1500
--
260
CDM & REC MECHANISM
Weblinks
•
•
•
•
•
www.recregistryindia.in
www.nldcindia.in
www.cercind.gov.in
www.forumofregulators.gov.in
www.mnre.gov.in
Thank You
NLDC
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