GERC sets norms for renewable power purchase obligation

“One-megawatt hour of electricity generated from eligible renewable energy resource is equal to an REC,” said a GERC official.

It is like trading of carbon credit. One carbon credit is equal to one tonne of carbon dioxide or equivalent gases. However,RECs are much better than carbon credits as they promote incentive mechanism for renewable energy rather than just promoting low carbon technologies. “The GERC will designate an agency for accreditation and recommending the renewable energy projects for registration and other functions under these regulations,” said the official.

The RPPO has also revised the power purchase obligation of the companies from 5 per cent in 2009-10 to 7 percent in 2012-13. Sanjan Nandan Agrawal,secretary GERC,confirmed the RECs are being introduced and it will be the only agency to issue RECs.

The Independent Power Producers of India (IPPAI) is one of the stakeholders,which is taking keen initiative in the RECs. Rakesh Bodalia from IPPAI Mumbai said: “Talks are on. We expect something concrete to take shape in the next two months.”

Though the final go ahead is yet to come from the Power Ministry and the Central commission,the companies are already gearing up for the idea.

The trading of certificates will be facilitated only through the Central commission. “The mechanism has been developed to ensure there is no mismatch between the availability of renewable energy sources and the requirement. With the REC,the companies can meet the RPPO easily,” said a GERC official.