Renewable energy certificates (RECs) are a key mechanism for promoting renewable energy development in India. They represent the environmental attributes of electricity generated from renewable energy sources and can be traded in the open market.
RECs are intended to provide a financial incentive for investments in renewable energy projects by allowing project developers to sell the environmental benefits of their projects in addition to the electricity they generate. The RECs can be sold to entities who wish to offset their own emissions or support renewable energy development.
In order to be eligible for trading, a project must be registered with the relevant regulatory authority and must meet certain criteria. Once registered, a project is issued with a unique REC code which is used to track and verify trade transactions.
The REC market in India is still in its early stages, but is growing rapidly. In the first year of trading (April 2010 – March 2011), a total of 3.3 million RECs were traded, worth around Rs.1.2 billion (US$22 million).
The growth of the REC market is an important step in promoting renewable energy development in India. It provides a financial incentive for investments in renewable energy projects and helps to create a market for the environmental benefits of renewable energy.
Other related questions:
Q: How are renewable energy certificates generated?
A: Renewable energy certificates (RECs) are credits that represent the environmental attributes of 1 megawatt-hour (MWh) of renewable electricity generation. One REC is created for every MWh of renewable electricity generated and delivered to the power grid.
Q: How does energy certificate work?
A: The energy certificate is an important document that is required in order to sell or lease a property. It provides potential buyers or tenants with information about the energy efficiency of the property, and includes an energy performance rating.
Q: How can I buy REC in India?
A: You can purchase RECs through any of the following mechanisms in India:
• The National Commodity and Derivatives Exchange (NCDEX)
• The Bombay Stock Exchange (BSE)
• The National Stock Exchange (NSE)
• The Power Exchange India Limited (PXIL)
Q: How are renewable energy certificates traded?
A: Renewable energy certificates (RECs) are traded in both the voluntary and compliance markets. In the voluntary market, RECs are bought and sold by businesses and individuals who want to support renewable energy generation. In the compliance market, RECs are bought and sold by utilities and other entities that are required to purchase a certain amount of renewable energy to meet state or federal renewable energy mandates.