Q 1. What is the objective of Renewable Energy Certificate (REC) mechanism?

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).

Q 2. What is the denomination of each REC issued?

As per REC Regulation 2022, technology multipler assigned to RE projects which are commissioned after 05.12.2022 as below:

The eligible entity whose RE source technology is not mentioned in above table will get 1 REC for 1 MWh hour of electricity generated.

Q 3. How many types of RECs are there?

There is single fungible REC.

Q 4. What would be the sources of revenue under REC mechanism?

Revenue for a RE generator under REC scheme includes revenue from the sale of electricity component of RE generation and the revenue from the sale of environmental attributes in the form of RECs.

Q 5. Who is eligible for REC?

1. Following entities will be eligible for the issuance of Certificates:

a) Renewable energy generating stations,

b) Captive generating stations based on renewable energy sources,

c) Distribution licensees, and

d) Open access consumers

2. A REGS/CGP will be eligible for issuance of Certificates, if it meets the following conditions:

(a) the tariff of such REGS, for part or full capacity, has not been either determined or adopted under section 62 or section 63 of the Act respectively, or the electricity generated is not sold directly or through an electricity trader or in the Power Exchange, for RPO compliance by an obligated entity. In case, the part capacity of REGS is not tied up for sale to an obligated entity for RPO compliance, energy from such capacity shall be eligible for issuance of REC.

(b) REGS selling power to the obligated entities including Distribution Company under MoU Route directly or through traders would be eligible under REC mechanism if such sale is not being accounted for RPO compliance of the obligated entity.

(c) REGS participating in IDAM and selling energy in the conventional segment of IDAM in case their bids remain uncleared in the RE segment of the IDAM. Such energy shall be eligible for issuance of REC.

(d) RE generators not scheduling energy due to regulation of access to power in case of non-payment of dues as per Late Payment Surcharges and Related Matter Rules, 2022 and selling energy directly or through an electricity trader or in the Power Exchange, provided that such energy is not used for RPO compliance by an obligated entity. Energy from such regulated capacity shall be eligible for issuance of REC

(e) Such REGS ((a) (b), (c) & (d) above) has not availed any (i) waiver of or concessional transmission charges or (ii) waiver of or concessional wheeling charges.

(f) Such REGS ((a) (b), (c) & (d) above) is grid connected.

3. A CGP meeting the conditions as specified under clause 7(2) above will be eligible for issuance of Certificates. However, the Certificates issued to such CGP to the extent of self-consumption, shall not be eligible for sale.

4. An obligated entity being a distribution licensee or an open access consumer, which purchases electricity from renewable energy sources in excess of the renewable purchase obligation as determined by the concerned State Commission will be eligible for issuance of Certificates to the extent of purchase of such excess electricity from renewable energy sources.

5. Advance Accreditation – An REGS which in normal circumstances is ineligible for accreditation due to the requirement conditions of the accreditation process, however, in special circumstances may become eligible for issuance of certificates. Such REGS can get itself accredited on advance basis called as Advance Accreditation.

6. Advance Registration – An REGS which in normal circumstances is ineligible for Registration due to the requirement conditions of the registration process, however, in special circumstances may become eligible for issuance of certificates. Such REGS can get itself registered on advance basis called as Advance Registration.

7. An REGS which is presently not eligible for Accreditation and Registration, however, they may be eligible for issuance of Certificates through eligibility conditions 2(c) & (d) above, may get itself Advance Accredited and Advance Registered. This exception is not valid for an REGS which is eligible as per 2(a) & (b).

8. An Eligible Entity as defined in 1 through 4 above, shall be eligible for issuance of Certificates, if it is Accredited or deemed to be Accredited and Registered as per detailed procedure.

Q 6. To whom REC would be issued? Whether Distribution licensee, Open Access consumer, CGP are eligible for issuance of REC?

REC would be issued to eligible RE generators, distribution Licensee, open access consumer & CGP based on RE.

Q 7. How long a REC would be valid?

The REC issued shall remain valid until they are redeemed.

Q 8. Which RE technologies are eligible for REC?

Grid connected RE Technologies approved by Central Government would be eligible under this scheme.

Q 9. What are the options available for RE generators to sell renewable energy generated?

RE generators will have two options i) either to sell the renewable energy at preferential tariff or ii) to sell electricity generation and environmental attributes associated with RE generations separately.

Q 10. What is the procedure for getting REC?

The eligible entites who fulfil the eligibility criteria can apply for the accreditation to concerned State Agency/RLDC. After successful accreditation the eligible entity RE generator may apply for registration to the Central Agency. After successful registration the eligible entity may obtain REC through the process of issuance of REC by Central Agency. The detailed procedures for Accreditation, Registration, Issuance and Redemption of REC can be accessed from REC website: www.recregistryindia.nic.in

Q 11. Who could buy REC? Can REC be used to fulfil Renewable Purchase Obligation?

REC could be purchased by the obligated entities. REC could also be purchased by entities other than obligated entities on voluntary basis

Q 12. Where RECs would be traded?

REC would be exchanged on the CERC approved power exchanges and through electricity traders.

Q 13. What would be the price of one REC?

The price of Certificates shall be as discovered in the Power Exchange(s) or as mutually agreed between eligible entities and the electricity traders.

Q 14. What are the Fees and Charges for Accreditation, Registration, Issuance and Redemption?

The details of fees and charges for different procedures of REC are as under:

Fee and Charges towards Accreditation (State Agency)	Amount in
Processing Fees (One Time)	5,000
Accreditation Charges (One Time)	30,000
Annual Charges	10,000
Revalidation Charge at the end of five (5) years	15,000
Fee and Charges towards Accreditation (RLDCs)	Amount in
Processing Fees (One Time)	10,000
Accreditation Charges (One Time)	30,000
Annual Charges	10,000
Fee and Charges towards Registration	Amount in
Processing Fees (One Time)	10,000
Registration Charges (One Time)	25,000
Annual Charges	10,000
Fee and Charges towards Issuance of REC	Amount in
Fees per Certificate	05

Q 15. What happens if Renewable Purchase Obligation is not met by the Obligated Entities?

As per the Model Regulation evolved by FOR, in case of default the concerned SERC may direct obligated entity to deposit into a separate fund to purchase the shortfall of REC at forbearance price. However, in case of genuine difficulty in complying with the renewable purchase obligation because of non-availability of certificates, the obligated entity can approach the Commission for carry forward of compliance requirement to the next year.

Q 16. If a plant is connected to grid as consumer (it is drawing power from the grid) and it has a RE Generating facility within its premises which is not connected to the grid. Whether this generating facility is eligible under REC Mechanism?

As per CERC REC Regulations, only grid connected RE Technologies are eligible under REC Mechanism. Since, the RE Generating unit for which REC benefits are sought is not connected to the grid, it is not eligible to participate under REC Mechanism.

Q 17. What is the date from which an RE Generator becomes eligible for issuance of RECs?

The energy injection for issuance of RECs by Registered RE Generator shall be eligible under these regulations from the date of commercial operation or from the date of registration of such plant by the central agency whichever is later, for the first month. However for the subsequent months, period of energy injection shall be from the first day of the month to last day of the same month.

Q 18. Can a RE Generator apply for Accreditation and Registration under REC Mechanism prior to Commissioning ?

Eligible RE Generating Projects can apply for Accreditation under REC Mechanism six months prior to proposed date of Commissioning. Eligible RE Generating Projects can apply for Registration under REC Mechanism three months prior to proposed date of Commissioning.

Q 19. What may be the probable cases of DEFAULT which may lead to REVOCATION of Registration?

If the Central Agency, after making an enquiry or based on the report of the Compliance Auditors, is satisfied that public interests so require, it may revoke registration of the eligible entity in any of the following cases, namely :-

(a) where the eligible entity, in the opinion of the Central Agency, makes willful and prolonged default in doing anything required of him by or under these regulations;

(b) where the eligible entity breaks any of the terms and conditions of its accreditation or registration, the breach of which is expressly declared by such accreditation or registration to render it liable to revocation;

(c) where the eligible entity fails within the period required in this behalf by the Central Agency - (i) to show, to the satisfaction of the Central Agency, that it is in a position fully and efficiently to discharge the duties and obligations imposed on it by its accreditation or registration; or (ii) to make the deposit or furnish the security, or pay the fees or other charges required by its accreditation or registration.

Q 20. Within how many days of generation, an eligible entity may apply for issuance of RECs?

The eligible entities shall apply to the Central Agency for Certificates within Six months after corresponding generation from eligible renewable energy projects.