In order to promote renewable sources of energy and development of market in electricity, the Central Electricity Regulatory Commission (CERC) on Monday notified regulation on renewable energy certificate (REC).
As per the regulation, it has been proposed that the Commission for registration of renewable energy generators participating in the scheme will designate a central level agency
The REC scheme aims at boosting the capacity of power generation from renewable sources by giving a green signal to the utilities from green energy-deficient states to buy renewable energy certificates in order to offset their lag.
An REC's value will be equal to 1 Mw-hour of electricity injected into the grid from renewable energy sources. These certificates will be exchanged at the power exchanges within a price band, determined by CERC.
The generators will have two options - either to sell the renewable energy at preferential tariff fixed by the concerned electricity regulatory commission or to sell the electricity generation and environmental at tributes associated with renewable energy separately.
According to CERC Secretary Alok Kumar, "The new regulations will benefit renewable power generators, who will be able to recover their cost by selling RECs to deficient states like Delhi"
Moreover, he added that they will also benefit distribution utilities by enabling them to purchase tradable energy certificates at market determined prices who have to otherwise purchase costly power in order to meet their renewable purchase obligations (RPOs).
Last month, CERC proposes to impose a congestion charge on states as a commercial measure in order to reduce power congestion in real-time operations.
As per its draft regulation, the regional entity or entities will pay the congestion charge, thus causing congestion in the inter-regional link or intra-regional link, to a regional entity or entities relieving congestion.
The proposal was made in a view of the reports from northern states which are under frequent power cuts and rising power rates due to increasing congestion in the grid.
CERC may specify the rate of congestion charge applicable from time to time to the whole or a part of the region.