06/07/2021 | Press release | Distributed by Public on 06/07/2021 05:37
Ministry of Power has circulated a Discussion paper on redesigning the Renewable Energy Certificate (REC) Mechanism for comments of stakeholders in power sector today.
Discussion paper on the requirement of redesigning the REC Mechanism has been prepared in order to align it with the emerging changes in power scenario and to promote new renewable technology.
Salient features of changes proposed in REC mechanism are:
1. Validity period of RECs; Floor & Forbearance Price
2. Period for which the RECs are to be issued to RE generators:
The RE generator who are eligible for REC, will be eligible for issuance of RECs for 15 years from the date of commissioning of the projects. The existing RE project that are eligible for REC would continue to get RECs for 25 years.
3. Promotion of new and high cost technologies in RE and the provision of multiplier for issuance of RECs
A technology multiplier can be introduced for promotion of new and high priced RE technologies, which can be allocated in various baskets specific to technologies depending on maturity. The multiplier would also take care of vintage depending on the date of commissioning of the project.
4. Incentivising Obligated Entities for procurement of RE Power beyond RPO.
5. No REC to be issued to the beneficiary of the concessional charges or waiver of any other charges.
6. The role of trader can be enhanced in the REC trading which will bring in two key advantages i.e. it will give long-term visibility to the buyers of the REC and they can easily fulfil the RPO. Further, the small buyers can bank on the traders for buying REC as an ease of purchase. This will ensure even the small buyers who finds difficulty in trading in REC market will be able to fulfil his RPO