Electricity produced by Renewable Energy (RE) sources may conceptually be split into the pure electricity component and the “green” component. The “green” component is called as Renewable Energy Certificate (REC). One REC is equivalent to one megawatt hour of electricity generated from renewable energy sources. Generators of renewable energy have the option of selling the electricity along with the green component or selling only the pure electricity component and selling the RECs separately. Once REC component is commercialized, electricity component is considered to be a power from conventional sources.
Central Electricity Regulatory Commission (CERC) of India has enacted the regulations for REC mechanism in the country. State Electricity Regulatory Commissions (SERCs) of individual states have also formulated their own regulations on the basis of CERC regulations.
The title of CERC’s regulation is ‘Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010’.
These regulations specify the Terms and Conditions for Accreditation, Registration, Issuance and Trading of Renewable Energy Certificates in the country. The chronology of REC regulations is given below;
Cost required for REC project implementation as required by various government agencies is given in the tables below; (Note: Service tax has to be paid extra in all cases, information is as on April 2013).
Cost involved in Accreditation
|Accreditation (State Agency)||Fees/ Charges (Rs.)|
|Application Processing Fee||Rs. 5,000|
|Accreditation Charges (Onetime payment – valid for 5 Years)||Rs. 30,000|
|Annual Charges||Rs. 10,000|
|Re-validation fees (after 5 years)||Rs. 15,000|
Cost involved in Registration
|Registration (NLDC)||Fees/ Charges (Rs.)|
|Application Processing Fee||Rs. 1,000|
|Registration Charges (Onetime payment – valid for 5 Years)||Rs. 5,000|
|Annual Charges||Rs. 1,000|
|Re-validation fees (after 5 years)||Rs. 5,000|
Cost involved in Issuance
|Issuance (NLDC)||Fees/ Charges|
|Issuance fees||10 Rs. per Certificate|
Cost involved in Trading
|Trading (Energy exchange)||Fees/ Charges|
|REC Trading – One time Portfolio Opening Charges at IEX||Rs. 40,000 *|
Note: *Charges applicable to IEX, Rs. /REC trading cost is also applicable. This is determined by respective power exchanges.
There is total of 3,615 MW (by 09 June 2013) of renewable energy capacity registered under REC mechanism. The renewable energy source wise breakup is given in the following chart;
Source: REC registry website
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