Outline Chronology

Conceptual framework

Salient Features of REC Mechanism

Role of Central Agency

REC Procedures

Current Status

Chronology of Events – Concept to Implementation

21/04/23 2

FOR initiated study to assess measures for increasing share of RE including Feasibility of Introducing REC Mechanism in IndiaJun’08

Hon’ble Prime Minister announced NAPCC recognizing Implementation of REC Mechanism as tool to promote REJun’08

MNRE engaged Consultant to Develop Conceptual Framework for REC Mechanism in IndiaAug’08

Central Electricity Regulatory Commission initiated process for Implementation of REC Mechanism in IndiaNov’09

CERC notified Regulations for Implementation of REC FrameworkJan’10

CERC has issued Order on Forbearance and Floor Price after Public Consultation ProcessJun’10

CERC Issued Order on Applicable Fee and Charges for Participating in REC MechanismSep’10

CERC approved Business Rules of Exchange PlatformFeb’11

First Session of REC TradingMar 30’11

CERC Designated National Load Despatch Centre as Nodal Agency under the REC RegulationsJan’10

Consultant submitted its recommendation to the Working Group on 'Policies on Renewables’Sep’08

Consultant submitted its Exhaustive Report to MNRE on Conceptual Framework for REC Mechanism in IndiaJun’09

FOR has approved Model REC Regulations for adoption by SERCsOct’09

CONCEPT

TRANSACTION

CERC has issued Order on Detailed Procedures for Implementation of REC MechanismJun’10

Status- RPO Regulations

BIO MASS

HYDRO

SOLAR

RENEWABLE ENERGY

BIO MASS

GEO THERMAL

SMALL HYDROWIND

SOLAR

BIO MASS

Energy

Generation

GREEN ATTRIBUTE

GREEN ATTRIBUTE

ELECTRICITYELECTRICITY

RENEWABLE ENERGY

CERTIFICATE

SOLAR CERTIFICATE

NON-SOLAR CERTIFICATE

CERC REC Regulation, 2010 – Conceptual Framework

NLDC 5

Electricity Component

* Self consumption by CPPs based upon renewable generation are eligible for RECs

RE Generation*

Sale at Preferential

TariffREC Component

Obligated Entities / Voluntary Buyers

Distribution Company/ Third Party Sale/ Power Exchange

Obligated Entities

RE Generator

Trading

1 MWh

Central Agency

REC

Salient Features of REC Mechanism

REC Framework: Eligibility

Self Consumption/

Captive use

Third party sale/Open Access

PPA with Distribution Licensee

No Promotional Wheeling

No Promotional Banking

No Electricity Duty Exempt

Sale at Mutually Agreed Price

PPA at Preferential

Tariff

PPA at Average Power Purchase

Cost

Eligible Eligible Not EligibleEligible if All Three conditions mentioned above are met

Grid Connected RE technology approved by MNRE

Entities involved to Operationalise REC Mechanism

Central Forum of Regulators Central Electricity Regulatory Commission Central Agency (National Load Despatch Centre) Power Exchanges Compliance Auditors

State State Electricity Regulatory Commission State Load Despatch Centre State Agencies Eligible Entities Obligated Entities

ACCREDITATION

REGISTRATION

ISSUANCETRADE &

REDEMPTION

REC Procedures

NLDC 10

Applicability & Scope Applicable to:

RE Generators including CPPs RE source recognized and approved by MNRE

SERCs to designate State Agencies Accreditation -six months prior to commissioning No PPA at Preferential Tariff In case of PPA

After 3 years or expiry date of PPA whichever is earlier For CPPs

No benefit in the form of: concessional/promotional transmission or wheeling charges, banking facility benefit and waiver of electricity duty

Accreditation valid for five years.

Eligible EntityEligible Entity State AgencyState Agency SLDCSLDC

Verification Prior to

Accreditation

Application for Accreditation

Confirmation of Accreditation

Intimation of Accreditation

Intimation of

Accreditation

3a3c

3b1

2

Step Wise Schematic Description of Procedure for Accreditation

Central AgencyCentral Agency

Application for availing Accreditation by Generating Co. to the Host SA

Application shall contain details of Owner/Operator, Generating Station , Metering,Connectivity , Statutory, General , fees & charges, Declaration

Separate Application for each RE Generation Project

NLDC 12

NLDC designated as Central Agency.

The functions of Central Agency includes : Registration of Eligible Entities Issuance of Certificate Maintaining and settling accounts in respect of the certificate Repository of transactions of certificates and Any other function incidental to the implementation of REC Mechanism

The NLDC to operationalise REC mechanism has developed various procedures . Various activities in these procedures shall be undertaken in the electronic

form to the extent feasible.

Appointment of NLDC as Central Agency

Eligible EntityEligible Entity State AgencyState Agency SLDCSLDC

Power Exchange(s)Power Exchange(s)

Central AgencyCentral Agency

Verification Prior to

Registration

2

Confirmation of

Registration3a

Intimation of

Registration

3b

Intimation of

Registration

3c

Intimation of

Registration

3d

Schematic Description of Procedure Schematic Description of Procedure for Registrationfor Registration

Application for

Registration 1

Information to be furnished by the applicant

Owner Details, RE Generating Station details, Certificate of Accreditation

Commissioning Schedule, Details of Fee & Charges, Declaration

NLDC 14

Time Line

Payment of applicable registration Charges

2 days7 days

15 days 15 days

3 Months

Schematic Description of Procedure for Issuance

State AgencyState Agency

SLDCSLDC

Distribution Licensee

Distribution Licensee

Eligible EntityEligible Entity

CentralAgencyCentralAgency

Joint Meter Reading

Application for Issuance

Verification Pre-Condition

Intimation of Meter Reading

Regular Injection Report

Intimation of Issuance

Issuance of REC

1

2

3

4a

4b

4c

5a

5b

Schematic Description of Procedure for Redemption

Obligated Entity / Buyer

Obligated Entity / Buyer

Eligible Entity

Eligible Entity

Power Exchange(s)

Power Exchange(s)

Offer for Sale13:00 to 15:00 hrs

1a

Bid for Purchase13:00 to 15:00

1b

Central AgencyCentral Agency

Verification Conditions(By 15:30)

Verification Conditions(By 15:30)

22Confirmation

Of REC validity & quantity

(by 16:00)

Confirmation Of REC validity &

quantity(by 16:00)

Central AgencyCentral Agency

Intimation of Trade results

For Extinguishing REC

(By 17:00)

3

Market Clearance(Volume & Price)

ReportsReports

4

Home Pagehttps://www.recregistryindia.in

Accreditation Details (As on 29.09.2011)

Non Solar Capacity (MW) NumberWind 682 168Small Hydro 59 12Bio Mass 352 30Bio Fuel Cogeneration 318 29Urban & Municipal Waste 0 0

Total 1411 239Solar Capacity (MW) Number Solar Thermal 0 0Solar PV 0 0

Total 0 0

Non Solar Capacity (MW) NumberWind 569 121Small Hydro 52 10Bio Mass 224 20Bio Fuel Cogeneration 230 21Urban & Municipal Waste 0 0

Total 1075 172Solar Capacity (MW) Number Solar Thermal 0 0Solar PV 0 0

Total 0 0

Registration Details (As on 29.09.2011)

Issuance & TradingMonth,

Year

Opening Balance

RECs Issued

RECs Redeemed

Closing balance

March, 2011 0 532 424 108

April, 2011 108 4503 260 4351

May, 2011 4351 28270 18502 14119

June, 2011 14119 27090 16385 24824

July, 2011 24824 30224 18568 36480

August, 2011 36480 31813 25096 43197

Sept, 2011 43197 72850 46362 69685

Total 195282 125597

Power Exchange wise Trade Details

Month

IEX MCV( RECs

Traded)PXI MCV

( RECs Traded)Total Trade

IEX MCP(Rs/ REC) PXI MCP

(Rs/ REC)

March, 2011 274 150 424 3900 2225

April, 2011 260 0 260 1500 0

May, 2011 14002 4500 18502 1500 1500

June, 2011 15902 483 16385 1500 1500

July, 2011 14668 3900 18568 1555 1550

August, 2011 22096 3000 25096 1800 1710

Sept,2011 41385 4977 46362 2300 2300

Highlights• Highest ‘Capacity’ Registered :

36 MW, Wind (Gujarat)(Gujarat Fluorochemicals Limited)

• Smallest ‘Capacity’ Registered: 0.35 MW, 8 Projects

• Average ‘Capacity’ Registered: 6.4 MW• Total Registered Buyers:

454 Buyers ( 5 Voluntary Buyers)

Concerns of stakeholders• Extension of applying period of REC from 3 months

to 6 months

• Validity of RECs

• Periodicity of Compliance

– Quarterly or Six monthly

• Floor/Forbearance Price

– Longer visibility of 5 years

Concerns of stakeholders

• Long Term RPO Trajectory: For next 5 to 10

years

• Same RPO level across the country

• Strong Enforcement Mechanism

• CPP eligibility: Electricity Duty waiver

• Vintage based floor price for solar REC

– Multiplier linked to reduction in floor price24

Weblinks

• www.nldcindia.in• www.recregistryindia.in• www.cercind.gov.in• www.forumofregulators.gov.in• www.mnre.gov.in