Key driver for implementation of REC mechanism in India
(NewDesignWorld Press Release Center) -- Bharat Book added a new report on "Renewable Energy Certificate : Push to Renewable Energy Development" provides critical analysis and information encompassing the future of REC.
Renewable Energy Certificate : Push to Renewable Energy Development
India has a vast resource of renewable energy sources but, not all states are endowed with the same level. Some states have a very high renewable energy potential, while other very less. Therefore, the Forum of Regulators in association with Central Electricity Regulatory Commission (CERC) and the State Electricity Regulatory Commission (SERC) has proposed the concept Renewable Energy Certificate (REC) Scheme. ( http://www.bharatbook.com/detail.asp?id=174330&rt=Renewable-Energy-Certificate-Push-to-Renewable-Energy-Development.html )
It is a market based instrument which enables the obligated entities to meet their Renewable Purchase Obligation (RPO). Under this mechanism, the Renewable Energy generator can sell the electricity component locally at the price of conventional electricity and trade the environmental attribute in the form of REC separately. The REC mechanism also aims at encouraging competition and eventually mainstreaming renewable energy sources. The mechanism has been extensively in use in countries like Australia, Japan, US, Netherlands, Denmark and UK and Indian government is also making aggressive efforts to fast catch up with the trend and making it a reality for Indian market.
The key driver for implementation of REC mechanism in India is RPO mandated by SERC for power utilities. Under Electricity Act 2003, the SERCs set targets for distribution companies, captive consumers and open access customers to purchase a portion of their total power requirement from renewable energy sources known as Renewable Purchase Obligation (RPO). Renewable energy resources are concentrated mostly in States which have already achieved high level of RPO and which are generally reluctant to buy energy from such sources beyond their obligation mandated by SERC. This has been hampering the growth of the sector and through REC mechanism this issue can be addressed. REC mechanism is also being seen as one of the pioneering efforts in any developing country for mainstreaming the renewable energy generation through market mechanism. Over the period, RE generator would be able to find Market Avenues for sale of electricity component through DISCOMs, traders, power exchanges, open access consumers. Eventually, this will reduce their dependence on Government support and they will learn to live on their own.
For more information kindly visit : http://www.bharatbook.com/detail.asp?id=174330&rt=Renewable-Energy-Certificate-Push-to-Renewable-Energy-Development.html
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