The sale of renewable energy certificates (RECs) has jumped by 31 per cent to 64.88 lakh in 2016-17 as compared to 49.55 lakh in previous fiscal indicating improvement in compliance of renewable purchase obligation. Power distribution companies as well as open access and captive consumers have to buy RECs from renewable energy producers under renewable purchase obligations (RPOs) as mandated by central and state regulatory commissions. RECs are aimed at providing an easier avenue for various entities, including power distribution companies, to meet their green energy obligations. According to the data of energy exchanges – the sale of RECs at Indian Energy Exchange (IEX) rose by 47.14 per cent to 46.19 lakh last fiscal as compared to 31.39 lakh RECs traded in 2015-16.
Power Exchange India Ltd (PXIL) sold 18.69 lakh RECs in 2016-17 as against 18.16 lakh in the previous financial year. IEX and PXIL, approved by the Central Electricity Regulatory Commission (CERC), used to hold auction of RECs last Wednesday of every month. From March, after a CERC directive, they have started holding the auctions on last Friday of the month. IEX sold 6.85 lakh RECs in March, while PXIL recorded a sale of 3.47 lakh RECs. One REC is equivalent to 1 MWh of electricity generated from renewable sources. Under the REC mechanism, an entity can generate power through renewable resources in any part of the country. The generator receives the cost equivalent of electricity produced from any source while the environment attribute is sold through the exchanges at market-determined price.