CERC notifies renewable energy regulations

The Central Electricity Regulatory Commission (CERC) has notified the regulatory framework for issue of renewable energy certificate (REC) in a bid to promote renewable sources of energy and develop a market for electricity.

The framework regulation is expected to give a push to renewable energy capacity addition in the country, an official release said today.

As per the government notification released today, there will be a central level agency to be designated by the central commission for registration of RE generators participating in the scheme.

The renewable energy (RE) generators will have two options - either to sell the renewable energy at preferential tariff fixed by the electricity regulatory commission or to sell the electricity generation and environmental attributes associated with renewable energy generation separately.

In case a renewable energy producer opts for the second choice, the company can exchange the environmental attributes in the form of REC. Price of the electricity component would be equivalent to the weighted average power purchase cost of the distribution company, including short-term power purchase but excluding renewable power purchase cost, the release said.

The central agency will issue the renewable energy certificate to the generators, the value of which will be equivalent to 1 MW of electricity injected into the grid from renewable energy sources.