Power distribution companies set to buy renewable energy certificates

Trading in certificates to begin by January 2011


Neha Sethi | November 18, 2010

Now power utilities which are not able to meet their obligation of procuring a part of their electricity requirement from green energy will be able to buy renewable energy certificates (REC) to compensate for it. Power minister Sushilkumar Shinde on Thursday launched the renewable energy certificate (REC) scheme in New Delhi. This scheme allows power utilities in green energy-deficient states to purchase these certificates to meet their renewable purchase obligations (RPO).
The power distribution companies in all the states need to purchase a fixed percentage of electricity from renewable sources following the targets fixed by the respective state electricity regulatory commission (SERC). 
new and renewable energy ministry secretary Deepak Gupta said that this mechanism would go a long way in promoting further investment in renewable energy sources. “RPO is a good measure which has facilitated growth. However, I believe that the RPO without adequate provisions of enforcement would not lead to the desired results. The need is to institutionalise as early as possible, an effective RPO compliance mechanism,” he added.
The REC mechanism will be implemented through an automated and secure web-based application. “The entire process of accreditation, registration, issuance, trading and redemption is fully electronic and automatic. Adequate info systems have put in place for central electricity regulatory commission (CERC), the central agency, state agencies and renewable generators,” S K Chaturvedi, chairman and managing director, PowerGrid Corporation said. He added that the SERCs will designate the state agencies for the REC mechanism, apart from providing the regulatory framework. 
The National Load Despatch Centre will be the central agency for issuing the certificates. One certificate will be equivalent to one megawatt hour of electricity.
power ministry secretary P Umashankar said that regulators have fixed RPOs ranging between one percent and ten percent. “Ministry of power is in the process of amending the tariff policy to provide for a solar specific RPO,” he added.
The trading of these certificates is expected to begin by January, 2011, Pramod Deo, chairman, CERC said. “Apart from power distribution companies, corporate houses, non-governmental organizations, and individuals who want to improve their green standing will also be allowed to purchase these certificates,” Deo said.



Other News

Civil Services 2022 Top 20 felicitated

Union Minister of State (Independent Charge) for Science and Technology, MoS PMO, Department of Atomic Energy and Department of Space and MoS Personnel, Public Grievances and Pensions, Dr Jitendra Singh on Tuesday interacted with and felicitated the first 20 All India Toppers of IAS/ Civil Services Exam 20

Boost to offshore wind energy projects

In a major decision, the Government has decided to grant waiver of ISTS charges to Off-Shore Wind Projects and extend the waiver to Green Hydrogen/Green Ammonia. This decision has been taken to facilitate wider execution of offshore wind energy initiatives, to promote the expansion of Green Hydrogen / Gree

Duty of stakeholders to provide cost effective, alternate energy fuels: Gadkari

Urging use of alternative and cost effective fuels to reduce pollution caused by vehicles, union road transport and highways minister Nitin Gadkari on Thursday said finding cost-effective fuels is the need of the hour and underlined that use of fuels like bio-CNG and green hydrogen help in protecting the e

Record production of rice, wheat, and sugarcane estimated

The foodgrain production of 3305.34 lakh tonnes is estimated in the current agricultural year 2022-23 – higher by 149.18 LMT as compared to the previous year, according to the Third Advance Estimates of production of major crops released by the ministry of agriculture and farmers welfare.

India`s ‘AIRAWAT’ ranks 75th in top 500 Supercomputing List

The AI Supercomputer ‘AIRAWAT’, installed at C-DAC, Pune, has been ranked 75th in the world. It was declared so in the 61st edition of Top 500 Global Supercomputing List on Tuesday at the International Supercomputing Conference (ISC 2023) in Germany. It puts India on top of AI S

Ocean Dialogue a great opportunity for G20 members

The ongoing third Environment and Climate Sustainability Working Group G20 meeting (May 21-23) has focused on three aspects: land degradation and reclamation of mining areas, Blue Economy and sustainable ocean management and resource sufficiency and circular economy. Leena Nandan, secretary,

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Current Issue


Facebook Twitter Google Plus Linkedin Subscribe Newsletter