Renewable Energy Certificate (REC) Mechanism

Central Agency
National Load Despatch Centre(NLDC)

Shailendra Kr. Verma

Chief Manager
National Load Despatch Centre(NLDC)
skverma@posoco.in
Policy and regulatory Framework : Enabling Provisions
Electricity Act, 2003
The EA 2003 has outlined several enabling provisions to accelerate the
development of RE based generation:
 (Section 3): National Electricity Policy and Plan for development of
power system based on optimal utilization of resources including
renewable sources of energy.
 (Section 61(h)): Tariff Regulations by Regulatory Commission to be
guided by promotion of generation of electricity from renewable
energy sources in their area of jurisdiction.
 (Section 86(1)(e)): Regulatory Commission to Specify Purchase
Obligation from renewable energy sources.
 (Section 66): Appropriate Commission shall endeavor to promote the
development of market (including trading) in power in such a manner
as may be specified and shall be guided by National Electricity Policy in
Sec 3.

4
 Policy and regulatory Framework : Enabling Provisions
• Section 86(1): The State Commission shall discharge the following functions, namely:
 (e) promote cogeneration and generation of electricity from renewable sources of energy by
providing suitable measures for connectivity with the grid and sale of electricity to any
person, and also specify, for purchase of electricity from such sources, a percentage of
the total consumption of electricity in the area of a distribution licensee;

• Various State Commissions have put significant emphasis on the last part of this important
clause while developing regulations for Distribution Licensees under their jurisdiction

National Action Plan on Climate Change (NAPCC)

RPO Trajectory notified by Ministry of Power

Long-term
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Trajectory
Non-solar 8.75% 9.50% 10.25% 10.25 % 10.25 % 10.50 %
Solar 2.75% 4.75% 6.75% 7.25 % 8.75 % 10.50 %
Total 11.50% 14.25% 17.00% 17.50 % 19.00 % 21.00 %
Target of 175 GW of Renewable Energy
5
 Policy and regulatory Framework : Enabling Provisions

• Under the New Tariff Policy 2016, development of renewable energy has been given a
special consideration
– New tariff policy, stipulates that State Commissions shall fix year wise RPO targets taking into
consideration availability of resources in the region and its impact on retail tariff.
– Long term growth trajectory to be prescribed by MoP in consultation with MNRE. Within
overall RPO percentage target, SERCs to reserve percentage for solar RPO to reach 8% by 2022
– It is desirable that purchase of energy from renewable sources of energy takes place more or
less in the same proportion in different States. Hence, it prescribes adoption of REC
mechanism to meet the purchase obligation in scenario of RE potential restricted to certain
parts of the country
– Appropriate Commission may also provide a suitable regulatory framework for encouraging
such other emerging renewable energy technologies by prescribing separate technology
based REC multiplier, vintage based multipliers.
– Renewable Generation Obligation (RGO)- New coal/lignite based thermal plants after
specified date to also establish/procure/purchase renewable capacity
– In order to promote renewable energy capacity addition, there will be No inter-State
transmission charges and losses to be levied for solar and wind power.
 Policy and regulatory Framework : Enabling Provisions

Draft Electricity (Amendment) Bill 2018

• “Renewable Purchase Obligation” means such minimum percentage of the purchase of

electricity from Renewable Energy Sources to be procured by every obligated entity in a manner
as may be prescribed by the Central Government from time to time;

• “Renewable Generation Obligation” means the Renewable Energy Generation capacity

required to be established or its equivalent capacity required to be procured from Renewable
Energy Sources or any instrument representing renewable energy, as the case may be, and sale
of such energy along with the electricity generated from the coal or lignite based thermal
generating station, by a generating company establishing a coal or lignite based thermal
generating station;
• Trajectory to be notified by central Government
• National Renewable Energy Policy
• Penalty for non-compliance of RPO - ₹ 1 - 5/unit
 Chronology – REC Mechanism
Jun’08 FOR initiated study for increasing RE Share and feasibility of REC
Jun’08 NAPCC recognized market instruments as tool to promote RE
Oct’ 09 FOR approved Model REC Regulations
Jan’10 CERC notified REC Regulations
Jun’10 CERC issued Order on Floor and Forbearance Price
Jun’10 CERC approved REC detailed procedures submitted by NLDC
Sep’10 CERC Issued Order on REC Fee and Charges
Sep’10 1st Amendment in REC Regulations
Nov’10 REC Mechanism Launched
Mar’11 1st REC Trading
July’13 2nd Amendment in REC Regulations
Dec’14 3rd Amendment in REC Regulations
May’15 Hon’ble Supreme Court Judgement regarding RPO Compliance
Mar’16 4th Amendment in REC Regulations
Mar’17 CERC Order on Floor and Forbearance Price
Nov’18 91st Trading session of REC
6
 REC Portal Home Page | https://www.recregistryindia.nic.in

Experience of management of REC registry Key Highlights

• Transparent
 Online payment gateway integrated w.e.f. August 2017 • User Friendly
 Expenditure incurred ~ approx. 14 crore (0.25% of total value of transactions)
• Real Time Data
 Knowledge dissemination - technical papers, conferences, stalls etc. • Single Touch Point
 27 workshops organized - on an average 30 officials trained for information
 More than 40 petitions have been filed in by the RE generators

7
 Concept of Renewable Energy Certificate

GREEN
ATTRIBUTE

RENEWABLE
ENERGY
CERTIFICATE

SOLAR NON-SOLAR
CERTIFICATE CERTIFICATE

ELECTRICITY

Transaction of ‘electricity’ and ‘green certificates’ in different

markets
One REC represents one MWh of energy generated from renewable sources
8
 Concept of Renewable Energy Certificate

Existing Tariff
Distribution
Mechanism Determined under
Company/ Section 62/ 63 of the
obligated Electricity Act/
entity Bilateral
RE Source

Bilateral Agreement /
Trading through PXs
OA / Trader

Distribution Average pooled

Company power purchase cost
(APPC)
of Host Utility
REC
Mechanism

Obligated
REC price discovered
Entity
RE Source (Buyer)
at PXs
 CERC REC Regulations -2010

RE Generation

Sale of Green Electricity as Brown Electricity as Green

Energy Component Component (REC)

Distribution Company
Obligated Entities /
Obligated Entities / Third Party Sale/
Voluntary Buyers
Power Exchanges

10
 Eligibility for Registration under REC Mechanism
1. Distribution Licensee – which has purchased Renewable Energy over and above their RPO
2. Grid Connected RE technology approved by MNRE under following routes

Third party sale/Open PPA with Distribution

Self Consumption/ Captive use
Access Licensee

Plant Commissioned between RE generator is not PPA at rates as

Plant 29.09.2010 and 31.03.2016 availing benefit in the determined
Commissioned and not availing benefit in the form of concessional/ Sell to DISCOM at under section 62
prior to form of concessional / promotional transmission Pooled cost of and 63 of Act
29.09.2010 promotional transmission or or wheeling charges Power Purchase
or after wheeling charges and/or and/or banking facility
31.03.2016 banking facility benefit & benefit
registered before 30.06.2016

Not Eligible Eligible Not Eligible

Eligible Eligible

11
 Appointment of NLDC as Central Agency

NLDC designated as Central Agency by Hon’ble CERC

 The functions of Central Agency includes :

o Registration of Eligible Entities
o Issuance of Certificate
o Maintaining and settling accounts in respect of the certificate
o Repository of transactions of certificates and
o Any other function incidental to the implementation of REC
Mechanism

 The NLDC has developed various procedures to

operationalize REC mechanism
 Regulations by CERC and SERCs
• CERC REC Regulations 2010 (and 4 amendments)
• SERC Regulations- 29 SERCs/JERCs have notified the RPO Regulations/Orders

13
 Important Amendments in REC Regulations
• Renewable energy contracted through competitive bidding is not eligible
under REC Mechanism
• After registration, the RE gen. eligible for RECs from the date of commercial
operation or from the date of registration whichever is later
• The eligible entity shall apply to the Central Agency for certificates within six
months from the corresponding generation
• Shelf-life of RECs extended from 365 days to 730 days to 1095 days
• Incentive to DISCOMs to procure beyond RPO target - DISCOMs eligible to
receive RECs
• Project under Self-consumption route is not eligible for new Registration
under REC Scheme
• Vintage multiplier factor of 2.66 for Solar Generators which have registered
their project prior to 1st Jan 2015
• An RE Generator may retain the RECs for offsetting its RPO as a consumer
• Revocation of RECs/recovery of sale proceeds of RECs of those RE generators
who have registered their projects on false information
 Salient Features of the REC Mechanism

Participation Voluntary
REC Denomination 1 REC = 1MWh
Validity 1095 days after issuance
Categories 1. Solar 2. Non-Solar (unique certificate number)
Sellers Eligible RE Generators / Distribution Licensees (DISCOM)
Buyers 1. Obligated Entities (DISCOM/ CPP / OA Consumers) 2. Voluntary
Trading Platform Power Exchanges
Trading Periodicity Last Wednesday of the month
Banking / Borrowing Not Allowed
Transfer Type Single transfer only, repeated trade of the same certificate is not
possible

Floor and Forbearance Price

Non - Solar REC Solar REC
01.06.2010 - 01.04.2012- w.e.f. 01.06.2010 - 01.04.2012 - 01.01.2015 -
w.e.f. 01.04.2017
31.03.2012 31.03.2017 01.04.2017 31.03.2012 31.12.2014 31.03.2017
Forbearance Price
3,900 3,300 3,000 17,000 13,400 5,800 2,400
(Rs./MWh)
Floor Price
1,500 1,500 1,000 12,000 9,300 3,500 1,000
(Rs./MWh)

15
 Processes in REC Mechanism
STAGES UNDER REC MECHANISM
ACCREDITATION

REGISTRATION

ISSUANCE
TRADE &
REDEMPTION

1. ACCREDITATION 2. REGISTRATION
 RE GENERATOR APPLIES ONLINE  RE GENERATOR APPLIES ONLINE
 STATE AGENCY VERIFIES DETAILS  CENTRAL AGENCY VERIFIES DETAILS
 STATE AGENCY ACCREDITATE/ REJECTS  CENTRAL AGENCY REGISTER/ REJECT

3. ISSUANCE 4. REDEMPTION
Redemption through Power Exchanges (PX)
 RE GENERATOR APPLIES ONLINE (10th ,20th and last  BUYERS & SELLERS PLACE BIDS AT PXs
 POWER EXCHANGES SEND PROVISIONAL FILE TO
day of month) CENTRAL AGENCY FOR VALIDATION OF SALE BIDS
 CENTRAL AGENCY SENDS EXCEPTION REPORT IF ANY
 SLDC VALIDATES ENERGY INJECTION REPORT  PXs PROCESS FINAL TRADE
 CENTRAL AGENCY ISSUES REC Redemption through Self-retention of RECs by RE
generators

REC procedures
• In line with the CERC REC Regulations, Central Agency has developed procedures for each process
• 5 times the procedures have been modified since launch of the mechanism

16
 Source wise breakup- as on 30.11.2018

No. of RECs Percentage of

No. of RECs
Redeemed Percentage of RECs
Accredited Accredited Registered Registered No. of RECs Redeemed Closing Percentage of
Source Wise through Registered Redeemed
Capacity (MW) Projects Capacity (MW) Projects Issued through Self Balance RECs Issued
Power Projects through Power
Retain
Exchanges Exchanges

1 Wind 2,250 436 2,206 415 20,280,775 17,514,594 1,531,571 1,234,610 45.7% 40.3% 38.2%

2 Biomass 513 50 425 42 9,137,080 8,882,628 147,549 106,903 4.6% 18.1% 19.4%

Bio-fuel
3
cogeneration
882 97 412 56 7,879,491 7,672,685 5,001 201,805 6.2% 15.6% 16.7%

4 Solar PV 743 372 737 366 8,367,947 7,774,342 88,677 504,928 40.3% 16.6% 16.9%

5 Small Hydro 227 36 179 30 3,979,083 3,908,160 6,899 64,024 3.3% 7.9% 8.5%

Urban or
6 Municipal 0 0 0 0 72,892 72,892 0 0 0.0% 0.1% 0.2%
Waste

7 Others 2 1 0 0 16,843 9,970 5,010 1,863 0.0% 0.0% 0.0%

8 DISCOM NA NA NA NA 652,259 33,120 0 619,139 NA 1.3% 0.1%

Total 4,616 992 3,960 909 50,386,370 45,868,391 1,784,707 2,733,272

 Registration Map

Report on REC in India : Key learnings, Data analysis and Way forward
https://recregistryindia.nic.in/pdf/Others/Report_on_REC_Mechanism.pdf
 Registered projects

Registered under OA/APPC/CGP(self-consumption) route

Total Registered till Registration Registered as on
Off-take 31.03.2018 Revoked/ Expired 31.03.2018 No. of RECs
S. No.
Route No. of Capacity No. of Capacity No. of Capacity Issued
Projects (MW) Projects (MW) Projects (MW)
1 OA 368 1,112 72 279 296 833 8,068,723
2 APPC 425 2,055 121 396 304 1,659 16,359,559
3 CGP 355 2,137 161 1,156 194 981 16,602,593
4 APPC/OA 4 57 1 24 3 33 444,418
5 CGP/OA 96 428 1 2 95 427 3,824,715
Total 1,248 5,789 356 1,855 892 3,934 45,300,008

Typical size of registered RE plants

Maximum Minimum Average
S. No. RE Source
Capacity (MW) Capacity (MW) Capacity (MW)
1 Bio-fuel cogeneration 25.26 0.95 7.07
2 Biomass 31.5 0.74 9.79
3 Small Hydro 24.00 1.00 7.08
4 Solar PV 19.00 0.10 2.04
5 Wind 50.40 0.23 5.25 19
As on 31.03.2018- Report on REC Mechanism
 As on 30.11.2018
RE Projects accredited by State Agencies RE Projects registered by Central Agency
S. No. State No. of Projects Capacity (MW) S. No. State No. of Projects Capacity (MW)
1 Tamil Nadu 241 1,140 1 Tamil Nadu 241 1,136
2 Maharashtra 298 939 2 Maharashtra 263 833
3 Uttar Pradesh 64 748 3 Rajasthan 130 622
4 Rajasthan 130 622 4 Uttar Pradesh 31 326
5 Gujarat 41 266 5 Gujarat 42 260
6 Madhya Pradesh 107 204 6 Madhya Pradesh 107 204
7 Andhra Pradesh 32 174 7 Andhra Pradesh 30 163
8 Karnataka 14 126 Karnataka
8 14 127
9 Himachal Pradesh 15 106 Himachal Pradesh
9 14 97
10 Punjab 8 63
10 Telangana 13 60
11 Telangana 12 58
11 Odisha 4 29
12 Odisha 5 37
12 Uttarakhand 5 28
13 Uttarakhand 5 28
13 Chhattisgarh 2 25
14 Jammu and Kashmir 3 28
14 Haryana 6 15
15 Chhattisgarh 2 25
15 Punjab 2 15
16 Haryana 8 21
16 Delhi 2 8
17 Bihar 3 18
17 Bihar 1 6
18 Delhi 2 8
18 Tripura 1 5
19 Tripura 1 5
20 Kerala 19 Kerala 1 1
1 1
DISCOMs DISCOMs
1 Maharashtra 2 NA 1 Maharashtra 2 NA
2 Himachal Pradesh 1 NA 2 Himachal Pradesh 1 NA
3 Andhra Pradesh 1 NA 3 Andhra Pradesh 1 NA
Total 996 4,616 Total 913 3,960
20
Registered Solar PV Projects

21
As on 31.03.2018- Report on REC Mechanism
Registered Wind Projects

22
As on 31.03.2018- Report on REC Mechanism
Registered Bio-fuel Cogeneration Projects

As on 31.03.2018- Report on REC Mechanism 23

Registered Small Hydro Projects

As on 31.03.2018- Report on REC Mechanism 24

Registered Biomass Projects

As on 31.03.2018- Report on REC Mechanism 25

Technology-wise RECs issued as on November 30, 2018

Technology-wise Percentage of RECs Issued

Urban or Municipal Others DISCOM
Waste 16,843 6,52,259
72,892 0.03% 1%
0.14%

Small Hydro
39,79,083
8%
Solar PV
83,67,947 Wind
17% 2,02,80,775
40%

Bio-fuel cogeneration
78,79,491
16%

Biomass
91,37,080
18%

26
 Month-wise issuance of non-solar RECs
Non-solar Dec'14, 3rd Amendment to the Mar'16, 4th Amendment to the
20,00,000 REC Regulations (w.e.f. 01.01.2015) REC regulations (w.e.f. 30.03.2016)

18,00,000

16,00,000
Mar'11, 1st trading of non-solar RECs on PXs

Jul'13, 2nd Amendment to

the
14,00,000
REC Regulations (w.e.f.
10.07.2013)
No. of RECs issued

12,00,000 Application window for issuance of

RECs increased from 3 months to 6
months
10,00,000
Issuance of RECs made 3 times
instead of 2 times in a month

8,00,000

6,00,000

4,00,000

2,00,000

0
Jul-11

Nov-11

Jul-12

Nov-12

Jul-13

Nov-13

Jul-14

Nov-14

Jul-15

Nov-15

Jul-16

Nov-16

Jul-17

Nov-17

Jul-18

Nov-18
Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18
May-11

May-12

May-13

Jan-15

May-15

May-16

May-17

May-18
Sep-11

Jan-12

Sep-12

Jan-13

Sep-13

Jan-14

May-14

Sep-14

Sep-15

Jan-16

Sep-16

Jan-17

Sep-17

Jan-18

Sep-18
27
 Month-wise issuance of solar RECs

Issuance of…
Vintage multiplier factor (2.66) for eligible
4,00,000 solar generator for the period from
01.01.2015 to 31.03.2017

3,50,000 Jul'13, Dec'14,

2nd Amendment to the 3rd Amendment to
May'12, 1st trading of solar RECs on PXs

REC Regulations (w.e.f. the

10.07.2013) REC Regulations
3,00,000
No. of Solar RECs Issued

DISCOMs are eligible for (w.e.f. 01.01.2015)

issuance of REC

2,50,000

2,00,000

1,50,000

1,00,000

50,000

0
Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul-18
Nov-13
Nov-12

Nov-14

Nov-15

Nov-16

Nov-17

Nov-18
Mar-13

Mar-14

Mar-15

Sep-15

Mar-16

Mar-17

Mar-18
May-12

May-13

May-14

May-15

May-16

May-17

May-18
Sep-12

Jan-13

Sep-13

Jan-14

Sep-14

Jan-15

Jan-16

Sep-16

Jan-17

Sep-17

Jan-18

Sep-18
28
REC Market

29
 REC Market Design

Power Market Regulations, 2010

– Rules and byelaws
– Type of contract (day ahead, term ahead etc.);
– Price Discovery methodology and matching rules

Regulatory changes in REC Market design,2012

– Modification in price discovery methodology and matching rules
– ‘Price time priority’ to ‘Price-pro-rata’ rule

Salient features of the REC Market Design

Auction type: Closed, double sided auction where both the sellers and buyers
participate anonymously
Bidding: Anonymous
Participation: Voluntary
Price formation: Uniform price auction
Price caps: Floor and ceiling prices notified by the CERC from time to time
Standard contract: 1 REC equivalent to 1 MWh
Categories of certificates: Solar and Non-Solar
 FY-wise breakup of RECs issued, redeemed and self-retained

REC Issued REC Redeemed REC Self-retained

1,80,00,000

1,60,00,000

1,61,84,151
1,40,00,000

1,20,00,000
No. of RECs

1,00,00,000

80,00,000

60,00,000

40,00,000

20,00,000
424
532

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

31
 No. of RECs

0
10,00,000
20,00,000
40,00,000
50,00,000
60,00,000

30,00,000
Mar,11
Apr,11
May,11
Jun,11
Jul,11
Aug,11
Sep,11
Oct,11
Nov,11
Dec,11
Jan,12
Feb,12
Mar,12
Apr,12
May,12
Jun,12
Jul,12
Aug,12
Floor Price (Rs. / MWh)

Sep,12
Oct,12
Nov,12
Dec,12
Forbearance Price (Rs. / MWh)

Jan,13
Feb,13
Mar,13
Apr,13
May,13
Jun,13
Jul,13

Market clearing Volume (No. Of RECs)

Aug,13
Sep,13
1,500
3,900

Oct,13
Nov,13
Dec,13
Jan,14
Feb,14
Mar'14
Apr'14
May'14
Jun'14
Jul'14
Aug'14
Sep'14
Oct'14
Nov,14
1,500
3,300

Dec,14
Jan,15
Feb,15
Mar,15
Apr,15
01.06.2010 – 31.03.2012 01.04.2012 – 31.03.2017

May,15
June'15
July'15
Aug'15
Sep'15
Oct'15
Nov'15

Market Clearing Price IEX (Rs. /REC)

Dec'15
Jan'16
1,000
3,000

Feb'16
Mar'16
Apr'16
w.e.f. 01.04.2017

May'16
Jun'16
Jul'16
Aug'16
Sep'16
Oct'16
Nov'16
Dec'16
Jan'17
Feb'17
Traded Non-solar RECs and Average Clearing Price (Rs./REC)

Mar'17
Apr'17
May'17
Jun'17
Jul'17
Aug'17
Sep'17
Oct'17
Nov'17
Dec'17
Jan'18
Feb'18
Mar'18
Apr'18
Market Clearing Price PXIL (Rs. /REC)

May'18
Jun'18
Jul'18
Aug'18
Sep'18
Oct'18
Nov'18
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Upto 30.11.2018

Clearing Price (Rs./REC)

 Traded Solar RECs and Average Clearing Price (Rs./REC)
01.04.2012 – 01.01.2015 – 31.03.2017 w.e.f. Till 30.11.2018
01.06.2010 – 31.03.2012
31.12.2014 # 01.04.2017
18,00,000 Forbearance Price (Rs. / 16,000
17,000 13,400 5,800 2,400
MWh)
Floor Price (Rs. / MWh) 12,000 9,300 3,500 1,000
# Vintage multiplier (2.66) introduced, and was valid up to March 31, 2017
16,00,000
14,000
13000 13400

14,00,000
12,000

12,00,000
10,000

Clearing Price (Rs. /RECs)

No. of RECs

10,00,000

8,000

8,00,000

6,000
6,00,000

4,000
4,00,000

2,000
2,00,000

0 0
Sep,12

Feb,13

Sep,13

Feb,14

Dec'14

Dec'15

Dec'16

Dec'17
Jul,13

Oct'14
Jul,12

May'14

May'15

May'16

Mar'17
May'17

May'18
Apr'14

Apr'15

Oct'15

Oct'16

Oct'17

Jun'18

Oct'18
May,12

Oct,12

May,13

Oct,13

Mar'14

Aug'14

Jan'15

Aug'16

Jan'17

Apr'17

Aug'17

Jan'18

Apr'18
Jun'14

Mar'15

Aug'15

Jan'16

Apr'16
Mar'16
Feb'15

Jun'15

Jun'16

Mar'18

Aug'18
Dec,12

Apr,13

Dec,13

Jul'14
Sep'14
Nov'14

Jul'15
Sep'15
Nov'15

Feb'16

Jul'16
Sep'16
Nov'16

Feb'17

Jun'17
Jul'17
Sep'17
Nov'17

Feb'18

Jul'18
Sep'18
Nov'18
Jan,13

Jan,14
Jun,12
Aug,12

Mar,13

Jun,13
Aug,13
Nov,12

Nov,13

Market clearing Volume (No. Of RECs) Market Clearing Price IEX (Rs. /REC) Market Clearing Price PXIL (Rs. /REC)
Month wise value of transaction of RECs

Total value of Transactions

~ Rs. 6982 Crore

34
 Judicial Orders regarding RPO Compliance

 APTEL Order dated 20th April 2015

• Carry forward/review should be allowed - keeping in view of availability of REC.
• In case of default in fulfilling RPO, the penal provision should be exercised.
 Hon’ble Supreme court (SC) judgment dated 13.05.2015
• Hindustan Zinc vs RERC on the applicability of RPO regulations.
• RPO on captive consumer and open access consumer is justified
• Obligated entities have option to purchase of RECs from Power Exchange(s).
• Interpreted the RPO in the context of Article 51A (g) and Article 21 of the Constitution of India
 Hon’ble Supreme Court Order regarding REC Trading
• Hon’ble CERC vide order dated 30.03.2017 reduced the Floor and Forbearance Price
• Hon’ble Supreme Court(SC) vide interim order dated 08.05.2017, stayed the trading of RECs
• Hon’ble SC vide order dated on 14.07.2017, allowed the trading of non-solar RECs
• Hon’ble APTEL vide order dated April 12,2018 decided that the trading of RECs (solar and non-
solar) shall be carried out as per Hon’ble CERC order dated March 30,2017
• Hon’ble SC in its interim order dated May 14, 2018, directed that “…Interim orders dated
08.05.2017 and 14.07.2017 to continue. However, we clarify that this interim order will not apply
to RECs issued on or after 01.04.2017…”.
 Subsequently, non-solar RECs issued up to March 30, 2017- being traded as per the old rates
 RECs (solar & non-solar) which were issued after April 01, 2018 - being traded as per rates notified vide
CERC order dated March 30, 2017.

35
 FY-wise purchase of RECs by the obligated entities

% of total
Type of
2011-12* 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Total REC
Buyer
Purchased
DISCOM 769,986 2,037,013 2,075,604 2,396,711 2,051,278 3,412,651 9,756,733 22,499,976 60.7

OA/CPP 245,698 532,151 671,346 663,232 2,901,010 3,073,112 6,426,872 14,513,421 39.2
Voluntary 14 20,650 1,744 1,979 2,865 1,976 546 29,774 0.1
Total 1,015,698 2,589,814 2,748,694 3,061,922 4,955,153 6,487,739 16,184,151 37,043,171 100
* Include 424 RECs Purchased by OA consumer / CPP and Voluntary in March 2011

DISCOM OA/CPP
100%
90%
24% 21% 22%
80% 24%
70%
39%
60% 47%
50% 59%
40%
30%
20%
10%
76% 79% 76% 78% 41% 53% 61%
0%
2011-12* 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
* Include 424 RECs Purchased by OA/ CPP consumer and Voluntary buyers in March 2011.

36
 Issuance and Redemption of RECs

5,00,00,000
RECs available for trade/ not Redeemed

4,50,00,000 RECs purchased by OA/CPP

4,00,00,000 RECs purchased by DISCOMs

3,50,00,000
No. of RECs

3,00,00,000

2,50,00,000

2,00,00,000

1,50,00,000

1,00,00,000

50,00,000

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Financial Year

37
 RECs purchased by DISCOMs
S. No. DISCOMs State 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Total

1 Assam Power Distribution Company Limited Assam 0 0 0 0 62,500 0 131,324 106,496 300,320

Bihar State Power Holding Company

2
Limited- Patna
Bihar 0 0 0 0 0 0 0 1,000,841 1,000,841

North Bihar Power Distribution Company

3
Limited
Bihar 0 0 0 0 0 0 0 346,796 346,796

South Bihar Power Distribution Company

4
Limited
Bihar 0 0 0 0 0 0 0 358,218 358,218

Electricity Wing of Engineering Dept UT

5
Chandigarh
Chandigarh 0 10,752 55,087 58,092 43,750 53,400 28,300 22,000 271,381

Jindal Steel and Power Ltd Distribution

6
License
Chhattisgarh 0 0 0 66,869 49,556 0 0 91,615 208,040

Dadra and Nagar Haveli Power distribution Dadra and Nagar

7
company Haveli
0 58,000 90,000 40,000 115,000 90,000 210,000 0 603,000

8 Electrical Dept UT Daman and Diu Daman and Diu 0 750 4,700 13,200 79,733 165,379 13,334 85,008 362,104

9 BSES Rajdhani Power Limited Delhi 0 0 0 0 0 0 333,332 0 333,332

10 BSES Yamuna Power Limited Delhi 0 0 0 0 0 0 20,000 46,660 66,660

Tata Power Delhi Distribution Limited/

11
NDPL
Delhi 0 0 0 0 0 0 166,666 1,953,276 2,119,942

12 Electricity Department Government of Goa Goa 0 0 0 0 85,000 120,000 0 57,000 262,000

13 Gujarat Urja Vikas Nigam Limited Gujarat 0 0 0 0 150,000 0 0 0 150,000

Torrent Power Limited - Ahmedabad

14
Distribution
Gujarat 0 288,587 193,770 245,765 417,800 409,720 289,404 30,322 1,875,368

15 Torrent Power Limited - Dahej Distribution Gujarat 0 3,000 1,000 4,155 12,065 22,720 18,600 0 61,540

16 Torrent Power Limited - Surat Distribution Gujarat 0 131,835 76,551 119,795 197,200 168,590 9,000 176,831 879,802

Continued…
38
 RECs purchased by DISCOMs

S. No. DISCOMs State 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Total
Himachal Pradesh State Electricity Himachal
17 0 0 0 0 0 0 3,863 0 3,863
Board Ltd Pradesh
Damodar Valley Corporation
18 Jharkhand 0 0 1,704 1,866 1,866 1,832 125,990 151,067 284,325
Jharkhand
Tata Steel Limited Power Distribution
19 Jharkhand 0 0 73,571 12,000 78,000 165,500 50,000 137,527 516,598
Licensee

20 Kerala State Electricity Board Limited Kerala 0 0 0 0 0 0 100,000 0 100,000

Brihan Mumbai Electric Supply &
21 Maharashtra 148 1,000 439,884 220,000 176,000 125,000 217,060 376,811 1,555,903
Transport Undertaking
Maharashtra State Electricity
22 Maharashtra 0 0 0 0 100,000 0 666,000 4,101,944 4,867,944
Distribution Company Limited

23 Reliance Infrastructure Limited Maharashtra 0 87,529 504,750 424,200 544,910 574,435 440,332 0 2,576,156

24 The Tata Power Company Limited Maharashtra 0 188,385 261,306 272,566 48,000 83,100 0 74,968 928,325
Manipur State Power Distribution
25 Manipur 0 0 0 0 0 3,997 0 0 3,997
Company Limited
Meghalaya Power Distribution
26 Meghalaya 0 0 0 0 0 0 2,000 375 2,375
Corporation Limited
Power and Electricity Department
27 Mizoram 0 0 0 0 1,055 1,105 1,000 0 3,160
Government of Mizoram
Electricity Department Government of
28 Puducherry 0 0 48,000 112,000 108,690 65,000 0 97,259 430,949
Puducherry
Punjab State Power Corporation
29 Punjab 0 0 285,350 483,333 0 0 66,666 61,751 897,100
Limited
Tripura State Electricity Corporation
30 Tripura 0 0 0 297 0 0 0 0 297
Limited
Uttarakhand Power Corporation
31 Uttarakhand 0 0 0 0 124,120 0 152,500 50,000 326,620
Limited
Damodar Valley Corporation West
32 West Bengal 0 0 1,340 1,466 1,466 1,500 367,280 429,968 803,020
Bengal

Total 148 769,838 2,037,013 2,075,604 2,396,711 2,051,278 3,412,651 9,756,733 22,499,976

39
 RECs vis a vis market development

RECs purchased by DISCOMs

RECs purchased by OA/CPP consumers

40
 RECs vis a vis market development

No. of DISCOMs participated in trading of RECs at PXs

No. of OA consumers/CPPs participated in trading of RECs at PXs 41

 Voluntary Buyers of REC(s)

• More than 27,000 RECs were purchased by central public-sector enterprises due to
inclusion of purchase of RECs under Corporate social Responsibility (CSR) by department
of public enterprises (DPE) in 2012-13
• 7,564 RECs were purchased by POSOCO under its CSR
• 8,732 RECs were purchased by individuals
• 20,911 RECs by the other companies/institutions
• 575 RECs were purchased by the World Bank country office
No. of RECs Purchased
S. No. FY
Solar Non-solar Total
1 2010-11 0 2 2
2 2011-12 0 12 12
3 2012-13 0 20,650 20,650
4 2013-14 0 1,744 1,744
5 2014-15 603 1,376 1,979
6 2015-16 698 2,167 2,865
7 2016-17 570 1,406 1,976
8 2017-18 1 545 546
TOTAL 1,872 27,902 29,774

42
 Impact of REC Mechanism
 Investment facilitated by the REC Mechanism
• Provided an additional avenue to RE generator(s) to sell their power locally to
DISCOM and/or open access consumer
• Capital investment by RE generators
• Positive signal to investors- Traded value of RECs ̴ Rs.7,000 crores

 Facilitates RPO Compliance

• 4.6 crore RECs purchased by more than 3,000 obligated entities(DISCOMs/CPPs/OA
consumers) purchased
• Without REC Mechanism, RPO compliance for small obligated entities like CPPs /
Open Access consumers would have been very difficult
• Choices to Obligated entities
 Inter-State RE Transactions
• Inter-state transaction of Renewable energy- CERC DSM Regulations
• RECs issued to projects located in 21 States/ UTs vs. RECs purchased by obligated
entities of 30 States/ UTs
• Self-retention of RECs - RE generators may offset RPO as a consumer for their
consumption units located in different parts of the country
 Development of Market for voluntary Buyers
• About 30,000 RECs have been purchased by voluntary buyers including companies,
institutions and individuals. 43
 Challenges and way forward

RPO Compliance
Demand-Supply mismatch
Limited Voluntary Market
Market Design
Reduction in the floor and forbearance
Enforcement of RPO by SERCs
Capacity Building of the stakeholders
44

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