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ARTICLE · 14 JUNE 2023

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Renewable Energy Certificates: What, Why & How?

ALAYA LEGAL ADVOCATES
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The renewable energy certificate (REC) incentivizes renewable energy producers (RE). India took this initiative to develop the RE market over a decade ago. Pan-India market-based Renewable Energy Certificate (REC)...

IndiaEnergy and Natural Resources
Suniti Kaur
Suniti Kaur
Ashwini Panwar
Ashwini Panwar
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What is a REC?

The renewable energy certificate (REC) incentivizes renewable energy producers (RE). India took this initiative to develop the RE market over a decade ago. Pan-India market-based Renewable Energy Certificate (REC) Mechanism was introduced in the year 2010 under the Electricity Act 2003 ("EA 2003") and the National Tariff Policy 2006 ("Tariff Policy 2006") to address the mismatch between the availability of Resources and the requirement of the obligated entities to fulfil their renewable purchase obligation (RPO).

In simple terms, the REC market is a mechanism that enables the trading of RECs. As of 2022, the Central Electricity Regulatory Commission (CERC) has implemented regulations for the REC mechanism. These regulations supersede the CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2010, which earlier governed the pan-India market-based Renewable Energy Certificates ("RECs") mechanism

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