CERC Notifies Draft Regulations 2022 for Issuance of RECs

CERC Notifies Draft Regulations 2022 for Issuance of RECs

The Central Electricity Regulatory Commission (CERC) has notified Draft Regulations, 2022, for the issuance of renewable energy certificates (RECs), which are aimed at developing the renewable power market.

CERC has invited comments, suggestions, and objections from the relevant stakeholders and interested persons with respect to the Draft Regulations. The responses are to be sent on or before 15th March, 2022, at the email addresses, [email protected] and [email protected].

Key highlights of the Draft Regulations have been summarised below. The complete details of CERC’s latest notification can be accessed here.

The entities eligible for the issuance of RECs include renewable energy generating station, captive generating station based on renewable sources, distribution licensees, and open access consumer, provided that each fulfils the following conditions:

  • Renewable energy generating station:

Its tariff has not been either determined or adopted under section 62 or section 63 of the Act, or the electricity generated is not sold either through an electricity trader or in the Power Exchange, for RPO compliance by an obligated entity.

It has not availed any waiver or concessional transmission charges or waiver or concessional wheeling charges or facility of banking of electricity.

  • Captive generating station:

Provided that the certificates issued to such stations to the extent of self-consumption will not be eligible for sale.

  • Distribution licensees and open access consumers: 

Provided they purchase electricity from renewable energy sources in excess of the renewable purchase obligation determined by the State Commission to be eligible for issuance of Certificates to the extent of purchase of such excess electricity from renewable energy sources.

The two processes involved in the grant of RECs are as follows:

  • Accreditation and registration for Certificates: 

Accreditation will be granted by the State Agency or the region’s RLDC, provided that the entities granted accreditation for Certificates under the REC Regulations, 2010, shall be deemed to have been granted accreditation for Certificates under these regulations till validity of their accreditation under the REC Regulations, 2010.

Post accreditation, the registration for Certificates granted shall be valid for 15 years from the date of registration.

  • Issuance, exchange and redemption of Certificates: 

No Certificate shall be issued for applications made beyond the period of six months from corresponding generation.

The Central Agency shall, within fifteen days from the date of receipt of complete application for issuance of Certificate by the eligible entities, issue Certificate or reject the application recording reason for such rejection and intimate the same to the concerned entity.

The Certificates shall be issued on the basis of the electricity generated and injected into the grid or deemed to be injected in case of self-consumption by the eligible captive generating stations based on renewable energy sources and duly accounted in the Energy Accounting System:

(i) as per the Grid Code or the State Grid Code, as the case may be, or
(ii) based on written communication of distribution licensee to the concerned State Load Despatch Centre or Regional Load

The Certificates shall be exchanged through power exchanges or through electricity traders in such periodicity as may be stipulated by the Central Agency in the Detailed Procedure.

The Certificates once exchanged through Power Exchange(s) or through electricity traders and used for compliance of RPO by the obligated entities, shall stand redeemed.

Upon redemption, the Central Agency shall extinguish the said Certificates from the Registry and update its records.

CERC ‘s Draft Regulations also elaborate on the following aspects associated with RECs:

  • Denomination of Certificate
  • Pricing of Certificates
  • Validity of Certificates
  • Fees and Charges
  • Detailed Procedure
  • Power to give directions
  • Power to Relax
  • Repeal and Savings

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