REC Mechanism
Trading Process

Accreditation

Processflow

processflow

Detailed Process

The basic procedure for accreditation of the RE generation project shall cover following steps:

  • The applicant shall apply for Accreditation on the Web Based Application and shall also submit the same information in physical form with the State Agency. The application for accreditation shall contain (i) owners’ details, (ii) operator details (in case the owner and operator are different legal entities), (iii) Generating Station details, (iv) Connectivity details with concerned licensee (STU/DISCOM), (v) metering details, (vi) Statutory Clearance details, (vii) Undertaking of not having entered into PPA on preferential tariff for the capacity for which participation in REC.
  • The State Agency shall assign a unique acknowledgement number to the Applicant for each application for accreditation of its RE generation project, for any future correspondence.
  • After receipt of application in physical form for accreditation, the State Agency shall conduct a preliminary scrutiny to ensure Application Form is complete in all respect along with necessary documents and applicable processing fees and accreditation charges. The State Agency shall undertake preliminary scrutiny of the Application within 5 working days from date of receipt of such Application.
  • After conducting the preliminary scrutiny, the State Agency shall intimate in writing to the Applicant for submission of any further information, if necessary, to further consider the application for accreditation or reject application. The reasons for rejecting the application for accreditation shall be recorded and intimated to Applicant in writing within 2 working days from date of receipt of the completed application by State Agency.
  • While considering any application for accreditation of RE generation project, the State Agency shall verify and ascertain availability of following information:
    • Undertaking of 'Availability of Land' in possession for setting up generating station
    • Power Evacuation Arrangement permission letter from the host State Transmission Utility or the concerned Distribution Licensee, as the case may be
    • Confirmation of Metering Arrangement and Metering Location
    • Date of Commissioning of RE project for existing eligible RE Project or Proposed Date of Commissioning for new RE for accreditation
    • Undertaking regarding Off-take/Power Purchase Agreement
    • Proposed Model and Make for critical equipment (say, WTG, STG, PV Module) for the RE Project. Confirmation of compliance of critical equipment with relevant applicable IEC or CEA Standards
    • Undertaking for compliance with the usage of fossil fuel criteria as specified by MNRE
    • Details of application processing fees/accreditation charges
  • The State Agency, after duly inspecting/verifying conditions elaborated in Step 5, shall grant 'Certificate for Accreditation' to the concerned Applicant for the proposed RE Generation project and assign a specific project code number to that effect which shall be used by such Applicant (Eligible Entities) for all future correspondence with the State Agency. The process of accreditation shall normally be completed within 30 days from date of receipt of complete information by State Agency. In case accreditation is not granted at this stage, the reasons for rejecting the application for accreditation shall be recorded and intimated to Applicant in writing.
  • If accreditation is granted, the State Agency shall also intimate accreditation of particular RE generation project to the following entities,
    • The Central Agency, as defined under Clause 2(1) (b)
    • The host State Load Despatch Center
    • The distribution company in whose area the proposed RE generation project would be located.

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Registration

Processflow

registration_processflow

Detailed Process

The basic procedure for registration of the RE generation project shall cover following steps:

  • The applicant shall apply for Registration on the Web Based Application and shall also submit the same information in physical form with the Central agency. The application for registration shall contain the following information as submitted for Accreditation of the RE Generation project: (i) Owner details (ii) RE Generating Station details, (iii) certificate of accreditation by the State Agency, (iv) generating facility commissioning schedule (v) any other relevant information as per the enclosed format (FORMAT- 2.1: Application for Registration of Eligible Entity). The Application made for registration of RE Generating Company with the Central Agency as Eligible Entity shall be accompanied by a non-refundable registration fees/charges and annual fee/charges as determined by the Central Electricity Regulatory Commission, by order, from time to time. In case, the Applicant has multiple RE generation projects then, separate Applications will have to be submitted by the Applicant for each RE generation project.
  • The Central Agency shall assign a unique acknowledgement number2 to the Applicant for each application for registration of its RE generation project, for any future correspondence. While registration of each RE generation project shall be carried out separately, unique number once assigned for a particular Eligible Entity shall remain same for all RE generation projects of the said Eligible Entity to be registered with Central Agency. A sequential number of series shall be followed for distinguishing each RE generation project of the Eligible Entity to be registered under the unique number assigned to particular Eligible Entity.
  • After receipt of application in physical form for registration, the Central Agency shall undertake preliminary scrutiny to ensure Application Form is complete in all respect along with necessary documents and applicable registration fees and charges. The Central Agency shall undertake preliminary scrutiny of the Application within 2 working days from date of receipt of such Application.
  • After conducting the preliminary scrutiny, the Central Agency shall intimate in writing to the Applicant for submission of any further information, if necessary, to further consider the application for registration or reject application. The reasons for rejecting the application for registration shall be recorded and intimated to Applicant in writing within 2 working days from date of receipt of the completed application by Central Agency.
  • While considering any application for Registration, the Central Agency shall verify and ascertain availability of following information:
    • A Valid Certification of Accreditation by State Agency
    • Date of Commissioning or Proposed date of Commissioning or Commissioning Schedule for new projects.
    • Undertaking that it has not entered into any Power Purchase Agreement at preferential tariff as may be determined by the Appropriate Commission
    • Details of payment of registration fees/charges
  • The Central Agency, after duly inspecting/verifying conditions elaborated in Step 5, shall grant 'Certificate for Registration' to the concerned Applicant as 'Eligible Entity' confirming its entitlement to receive Renewable Energy Certificates for the proposed RE Generation project and assign a specific entity-wise and project-wise code number to that effect which shall be used by such Applicant (Eligible Entities) for all future correspondence with the Central Agency. The process of registration shall normally be completed within 15 days from date of receipt of complete information by Central Agency. In case registration is not granted at this stage, the reasons for rejecting the application for registration shall be recorded and intimated to Applicant in writing.
  • If registration to Eligible Entity is granted, the Central Agency shall also intimate registration of Eligible Entity for particular RE generation project to the following entities,
    • The host State Agency
    • The host State Load Despatch Center
    • The Power Exchanges, as defined under Clause 2(1) j of the CERC REC Regulations

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Issuance of Renewable Energy Certificates

Processflow

registration_processflow

Detailed Process

The basic procedure for issuance of Renewable Energy Certificates to the Eligible Entities includes the following steps:

  • 1) The eligible entity shall apply for Issuance of REC on the Web Based Application and shall also submit the same information in physical form with the Central Agency. The application for issuance of certificate shall include (i) Energy Injection* Report duly certified by the concerned State Load Despatch Centre (ii) Registration Certificate and shall be made in the specified format (FORMAT- 3.1: "Application for Issuance of Renewable Energy Certificates to the Eligible Entities"). The application shall be accompanied by applicable fee & charges towards issuance of certificates as determined by CERC from time to time. While making application for issuance of RECs, the Applicant (Eligible Entity) shall quote the unique Registration Number assigned to it by Central Agency at the time of registration.

    Note:- Injection shall include self-consumption of the Captive Power Plant if it is separately metered and measurable.
  • The Central Agency shall assign an acknowledgement number to the Eligible Entity for its registered application request for issuance of Renewable Energy Certificates, referring to Unique Number assigned to the concerned Eligible Entity at the time of registration, for any future correspondence.
  • After receipt of application in physical form for issuance of renewable energy certificates from the Eligible Entity, the Central Agency shall undertake a preliminary scrutiny within 2 working days to ensure that the Application Form is complete in all respect along with necessary documents and applicable fees and charges. As part of preliminary scrutiny, the Central Agency shall ensure fulfilment of following conditions:

    • The application is made in the format specified by the Central Agency from time to time.
    • The status of Accreditation of the Eligible Entity with the Central Agency has not expired.
    • The status of Registration of the Eligible Entity with the Central Agency has not expired.
    • The duly certified Energy Injection report by the concerned State Load Despatch Centre is attached for the same period for which application is made towards issuance of Renewable Energy Certificate by the Eligible Entity.
    • The application is accompanied with fees & charges.
  • After conducting the preliminary scrutiny, the Central Agency shall intimate in writing to the Applicant for submission of any further information or seek clarification, if necessary, to further consider the application for issuance of Renewable Energy Certificates or reject application. The reasons for rejecting the application for issuance of Renewable Energy Certificates shall be recorded and intimated to Applicant in writing within 2 working days from date of receipt of the completed application by Central Agency.
  • While considering any application for issuance of Renewable Energy Certificate, the Central Agency shall verify and ascertain availability of following information:
    • Verification of the time period for which the Central Agency may have already issued Renewable Energy Certificates to the concerned Eligible Entity.
    • Verification of Renewable Energy Certificates claimed by the Eligible Entity from the duly certified Energy Injection Reports by the concerned State Load Despatch Centre in respect of concerned Eligible Entity.
    • Details of fee & charges made for issuance of certificates.
    • Confirmation of Compliance Auditor report, if any.
  • The Central Agency shall issue the Renewable Energy Certificates to the Eligible Entity within fifteen (15) days from the date of receipt of application form along with complete information necessary for processing of application for issuance of RECs.
  • In case the Eligible Entity is not fulfilling any of the conditions mentioned under Step-5 and fails to provide necessary information/clarification in the matter within stipulated timeframe, the Central Agency may reject the application and shall intimate to the Eligible Entity, in writing, the reasons for rejecting the application for issuance of RE certificates.
  • Upon issuance of RE Certificates to Eligible Entity, the Central Agency shall also intimate about such issuance to the concerned State Agency.

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Redemption of Renewable Energy Certificates

Processflow

registration_processflow

Detailed Process

The basic procedure for redemption of renewable energy certificates shall include following steps:

  • The total quantity of Certificates ('Solar' and 'Non-Solar' separately) placed for dealing on the Power Exchange(s) by the eligible entity shall be less than or equal to the total quantity of valid Certificates held by the eligible entity as per the records of the Central Agency. The renewable energy certificates shall be dealt in the Power Exchange within the price band as specified by CERC from time to time. The Eligible Entity shall place for dealing of renewable energy certificates, both 'Solar' and 'Non-Solar' Certificates, on any Power Exchange authorized to deal in renewable energy certificates by CERC. The total quantity of Certificates ('Solar' and 'Non-Solar' separately) placed for dealing on the Power Exchange(s) by the eligible entity shall be less than or equal to the total quantity of valid Certificates held by the eligible entity as per the records of the Central Agency. The renewable energy certificates shall be dealt in the Power Exchange within the price band as specified by CERC from time to time.
  • During the time the bidding window opens in the Power Exchange, the eligible entities shall place their offers and the buyers shall place their bids through the trading platform of the respective Power Exchange.
  • On closure of the trading window, the Power Exchange(s) shall send the maximum bid volumes for each of the eligible entity, which has placed offers on that Power Exchange, to the Central Agency for verification of the quantity of valid RECs available with the concerned eligible entity for dealing on the Power Exchange(s).
  • The Central Agency shall check the combined maximum bid volume in the Power Exchange(s) for each eligible entity against the quantity of valid RECs for that entity for both 'Solar' and 'Non-Solar' Certificates. The Central Agency shall send a report to Power Exchange(s) confirming the availability of the valid RECs with the eligible entity. In case the combined maximum bid volume placed for dealing in the Power Exchange(s) exceeds the quantity of valid RECs held by the eligible entity as per the records of the Central Agency, then, the Central Agency shall advise the Power Exchange(s) to exclude such bid(s) while working out the Market Clearing Price and the Market Clearing Volume.
  • The Power Exchange(s) shall work out the Market Clearing Price and the Market Clearing Volume taking into account the advice received from the Central Agency and send the final cleared trades to the Central Agency for extinguishing of the RECs sold in the records of the Central Agency. The certificates will be extinguished by the Central Agency in the 'First-in-First-out' order.

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