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September 7, 2010India’s Central Electricity Regulatory Commission (CERC) had suddenly come up with an order mandating 6% Renewable Energy Generation for Utilities under National Action Plan on Climate Change (NAPCC) with 10% RE target by 2015.This had caused consternation as India still does not have a well functioning Renewable Energy Certificate (REC) market till now which would allow deficient utilities to buy RECs.Note RECs are a Green Energy Subsidy Mechanism to promote different forms of Renewable Energy which is used in different countries like USA and Australia.RECs need a well developed market in order for its smooth functioning which India currently lacks.The Forum of Regulators had asked India’s central electricity regulator to lay down rules for REC trading.The ball has started ruling with India’s 2 power exchanges Indian Energy Exchange (IEX) and Power Exchange India (PXI) filing petitions to start trading.With test runs of REC trading already in process,it does not seem far off when RECs would be actively be traded in Indian Power Exchanges.Another Power Exchange to be set up by NTPC in the near future is also expected to develop a market for RECs.Indian Power Exchanges set the ball rolling in Renewable Energy Certificates Trading
CERC asked to okay renewable energy certificate contracts – BS
Indian Energy Exchange (IEX) and Power Exchange India (PXI), both involved in day-ahead trading, have approached the Central Electricity Regulatory Commission (CERC) for introduction of renewable energy certificate (REC) contracts.Both have filed their petitions under Regulations 4 and 7 of the CERC (Power Market) Regulations, 2010, Detailed Procedure.
IEX and PXI sources told Business Standard the REC mechanism sought to address the mismatch between availability of RE sources and the requirement of entities to meet their renewable purchase obligation.It is also expected to encourage RE capacity addition in states, as the REC framework seeks to create a national market for such generators to recover their cost. Several state electricity regulatory commissions have notified the REC mechanism and therefore they have approached CERC with a plea to launch REC contracts on exchanges.
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[…] is being heavily promoted through Government Subsides and Renewable Energy Mandates by the CERC.Trading of Renewable Energy Certificates (RECs) should start in a year or so giving additional revenue streams to Green Energy Producers.Here are […]