The renewable energy certificates (REC) mechanism is a market-based instrument to promote renewable sources of energy and development of the market in electricity.
It provides an alternative voluntary route to a generator to sell his electricity from renewable sources just like conventional electricity and offer the green attribute (RECs) separately to obligated entities to fulfill their RPO.
The sales of REC dropped by about 65 percent to 3.68 lakh units in April as compared to 10.62 lakh in the same month last year due to lower supply, according to data released by the Indian Energy Exchange (IEX) and Power Exchange of India (PXIL).
Both non-solar and solar RECs continued to suffer from buy bids again surpassing sell bids due to the lacking inventory in the country.
Under the renewable purchase obligation (RPO), bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of RECs.
They can buy RECs from renewable energy producers to meet the RPO norms.
This is a Syndicate News Feed