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Our Expertise

RE Certification:

Renewable energy certificate: Power as a comodity


Although India is abundantly gifted with variety of renewable energy (RE) sources, not all States are endowed with same level of renewable energy sources. While some States have very high renewable energy potential, some States have very little renewable energy potential.


To meet this difference, all electricity regulatory commissions have made certain renewable purchase obligations (RPO) mandatory for the distribution utilities which are to be met by the RE certificates. However, there are certain State specific approaches when RE certificate strategies are to be deployed at national level and our experts at Radiance understand how to make this opportunity profitable for you.


Objectives for REC Mechanism in India


While effective implementation of inter-state transactions would be primary objective for the REC mechanism in India, some of the other objectives identified for REC mechanism are:

  • Effective implementation of RPO regulation in all States in India

  • Increased flexibility for participants to carry out RE transactions

  • Overcoming geographical constraints to harness available RE sources

  • Reduce transaction costs for RE transactions

  • Create competition among different RE technologies

  • Development of all encompassing incentive mechanism

  • Reduce risks for local distribution licensee.

Overview


Internationally, purchase of REC is deemed as purchase of power generated from RE sources. It is acknowledged that renewable energy generation entails production of certain environmental attributes apart from electricity generation. Thus, RE generator can sell two different products on account of renewable energy generation.


These products are the electricity and the environmental attributes associated in the form of RE Certificate. The RE generator may sell RECs to the entities with RPO target in the State or outside the State. The REC mechanism will enable Obligated Entities in any State to procure RECs generated in any of the States in India and surrender the same to satisfy its RPO target.

However with this new mechanism, certain uncertainties co exist. Aryav Green Energys take care of these uncertainties and provide you solutions which enables you to enter into the field of solar without any worry. For