Central Electricity Regulatory Commission (CERC) notified amended regulation pertaining Renewable Energy Certificate (REC) named ” CERC (Terms and conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulation, 2022″.
One REC certificate comes with equivalent 1 MWh of renewable energy. Entities looking for REC certificates are
a. Renewable Energy generating stations.
b. Captive generating stations based on renewable energy.
c. Distribution Licensees.
d. Open access consumers.
The National Load Dispatch Center (NLDC) shall be the central agency for the following functions as per the REC 2022 regulations :
i. Undertake registration of eligible entities., ii. Develop a mechanism for accounting of generation and sale in respect of certificates.
iii. Undertake issuance of certificates, iv. act as repository of transactions in certificates, v. maintain registry of certificates.
1.Eligibility Condition For Issuance Of Certificates :
A. Renewable energy generating stations :
Conditions : a. The tariff of such renewable energy generating station, for part or full capacity, has not been adopted under section 62 or section 63 of the act respectively or the electricity generated is not sold directly or through an electricity trader or in the power exchange for RPO compliance by an obligated entity.
b. Renewable energy station has not availed any waiver in transmission charges or wheeling charges.
B. Captive Generating Station :
Conditions : In continuation of the above clause , there will be an addition in form of ” The certificates issued to captive generating station to the extent of self consumption, shall not be eligible for sale.
C. Distribution Licensee Or Open Access Consumer :
Conditions : A distribution licensee or open access consumer which purchases electricity from RE sources in excess of the RPO obligations shall be eligible for issuance of certificates to the extent of purchase of such excess electricity from renewable energy sources.
2.Processes for REC certification :
i. Accreditation to the eligible entities for certificates :
For intra-state transmission systems accreditation will be granted by state commission. And that of will be granted for inter-state transmission system shall be granted by the RLDC.
ii. Grant of registration for certificates will be granted by central agency. the registration granted in terms of these regulations shall be valid for 25 years from the date of registration.
3. Issuance of certificates :
i. Application for issuance of Certificates shall be made by an eligible entity being a renewable energy generating station or a captive generating station based on renewable energy sources, to the Central Agency within six months from the corresponding generation by the eligible entity.
ii. Application for issuance of Certificates shall be made by an eligible entity being a distribution licensee or an open access consumer within three months from the end of a financial year.
The Certificates issued to the eligible entity shall remain valid till they are sold in power exchange or through a trader and used for RPO compliance.
4.Certificate Multiplier :
New concept of ‘Multiplier’ has been introduced by assigning Certificate Multiplier for the new RE Projects based on the tariff range of various RE technologies. Certificate Multiplier assigned to the RE technologies would be applicable for 15 years from the date of commissioning of such project as follows:
Renewable Energy Technologies Certificate Multiplier
On-shore Wind and Solar 1
Hydro 1.5
Municipal Solid Waste (MSW) and
non-fossil fuel-based co-generation 2
Biomass and Bio-fuel 2.5
Certificate Multiplier has been determined based on the tariff range of various renewable energy sources, by taking into account the Tariffs of renewable energy projects discovered through bidding process under Section 63 of the Electricity Act, Tariff Orders issued by the Commission, Tariff Orders issued by State Electricity Regulatory Commissions , Renewable Energy Project Specific Tariffs determined by the Appropriate Commission, if any. Certificate Multiplier for other renewable energy technologies, not covered in the table provided in the draft Regulations, shall be notified by the Commission on a case-to-case basis.
