Green Clean Guide (GCG) aims to be an easy-to-use approach created to make available environment, energy, sustainability, and clean technology related information in a single place. Our aim is to make things simple for our readers.
Categories: REC

Pricing of the Renewable Energy Certificates

Each Renewable Energy Certificate (REC) issued shall represent 1 MWh of electricity generated from renewable energy source and injected into the grid.

The price of Certificate shall be discovered in the Power Exchange. In between Central Electricity Regulatory Commission will provide information for the floor price and forbearance price. REC’s price range (Minimum and maximum) would be fixed separately for solar and non-solar Certificates.

Following factors are considered to fix the price range;

1. Variation in cost of generation of renewable energy such as Solar and Non Solar.

2. Variation in the Pooled Cost of Purchase across States in the country

3. Expected electricity generation from RE sources  such as

  • Expected RE capacity under preferential tariff
  • Expected renewable energy capacity under REC mechanism

4. Renewable Purchase obligation (RPO) targets set by State Electricity Regulatory Commissions

Forbearance price: The highest difference between RE tariff fixed by the CERC and the Average Pooled Power Purchase Costs has been taken as the forbearance (ceiling) price.

Floor Price:

  • Difference between the minimum requirement for project viability of Renewable Energy Technologies and respective state average power pool cost of previous year.
  • The RPO targets
  • Market Equilibrium Price (MEP)  based on the supply and demand
  • Basic minimum requirements (in terms of recovery of cost of generation)

REC Price range

REC’s Floor Price Forbearance price
Solar 12000 15000
Non Solar 1500 3900

Know more about the REC Mechanism

(Source: Determination of Forbearance and Floor Price for the REC framework, CERC)

18.52519973.848625
Salunkhe Vihar, Pune
Shailesh

Shailesh is post graduate in Environment Management from Forest Research Institute (FRI) University, Dehradun, India. Presently he is working in the areas of Environmental and Renewable Energy Advisory Services. He has started GreenCleanGuide.com during his college days.

Disqus Comments Loading...

View Comments

Published by

Recent Posts

India At A Turning Point: Coal or Renewables – At Stake The Future Of The Nation

Under the “Atmanirbhar Bharat Abhiyan”, the self-reliant India Scheme, the current BJP government wants to make India completely self sufficient… Read More

2 weeks ago

Ditch paper for this eco-friendly static charge whiteboard

Every spiral you use to take down notes, every printout you get from the copier in your office and every… Read More

3 weeks ago

Track the birds visiting your garden with Bird Buddy

Natural historian David Attenborough once said: Live feeds serve as a means of lifeline and communication between us, and the… Read More

3 weeks ago

How Aptera Never Charge can change the global EV market

For most people, while they're looking to buy a car, fuel efficiency, speed, affordability, innovation, and impact on the environment… Read More

4 weeks ago

How Oddli is making a fashion statement with fabric scraps

Did you know that your next fashion purchase is contributing to pollution? The fashion industry is among the top five… Read More

4 weeks ago

History of Coal in India

Coal is one of the ancient sources of energy known to mankind and its mining started thousands of years back.… Read More

4 weeks ago