News:The sales of Renewable Energy Certificates(REC) fell around 10% to 5.04 lakh units in December as compared to 5.59 lakh in the same month a year ago.
Background on REC:
- The Electricity Act, 2003 and the National Action Plan on Climate Change(NAPCC) provide for a roadmap for increasing the share of renewable in the country.
- Central Electricity Regulatory Commission(CERC) had notified the Regulation on Renewable Energy Certificate(REC) in 2010.
About Renewable Energy Certificates(REC):
- Renewable Energy Certificate (REC) mechanism is a market based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations(RPO).
- It is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the renewable purchase obligation(RPO).
Working of REC:
- REC are also known as green energy certificates or tradable renewable certificates.They are proof that energy has been generated from renewable sources such as solar or wind power.
- Each REC represents the environmental benefits of 1MWh of renewable energy generation.When you purchase RECs,renewable energy is generated on your behalf.
- Indian Energy Exchange (IEX) and Power Exchange of India (PXIL) are the two power bourses in the country, which are engaged in trading of RECs and electricity.
- The mechanism helps states meet their regulatory requirements by overcoming the geographical constraints on the existing renewable potential in different states.