This has been possible only because of CERC and SERC's prompt and positive response towards the mechanism. Various other statutory bodies like NLDC, FOR, MoP and MNRE have also come together and have provided a very strong support for the mechanism.
Renewable Energy Certificates (RECs) represent the attributes of electricity generated from renewable energy sources. These attributes are unbundled from the physical electricity and the two products-the attributes embodied in the certificates and the commodity electricity-may be sold or traded separately.
In other words, one REC represents that 1MWh of energy is generated from renewable sources.REC Trading will be through Closed double-sided auction on the last Wednesday of every month and bidding will be done from 13:00 Hrs to 15:00 Hrs on the auction day(T-day).
RECs can be used by the obligated entities (Distribution Licensees, Captive Consumers & Open Access Consumers) to demonstrate compliance with regulatory requirements, such as Renewable Purchase Obligations. There are two Categories of Certificates a) Solar Certificates & b) Non-solar certificates.
REC represents delivery of 1 MWh of Renewable energy to the grid and all associated environmental benefits of displacing 1 MWh of Conventional Power. RECs are expected to become the currency of renewable energy markets because of their flexibility and the fact that they are not subject to the geographic and physical limitations of commodity electricity.
REC is one such tool or scheme facilitating the society however it is essential to built Critical mass development and Policy level support to drive scale to reduce cost. REC will help to increase the flexibility for participants, overcome geographical constraints
Jayant Deo, MD & CEO, IEX said "IEX is committed to prove its power market acumen by creating a complete marketplace not only for electricity but also for Renewable Energy Certificate market. We have some critical mass available with us in form of utilities from 25 states and 4 UT's, 110 Captive generators and over 655 industrial consumers, who are currently participating on IEX for trading in electricity. They will be active in REC market too."