Union Minister of Power and New & Renewable Energy, Shri RK Singh has given his assent to amendments in the existing Renewable Energy Certificate (REC) mechanism. The intent behind this decision is to align the ‘mechanism’ with the emerging changes in the power scenario and also to promote new renewable technologies.
The Salient features of changes proposed in revamped REC mechanism are:
- Validity of REC would be perpetual i.e., till it is sold.
- Floor and forbearance prices are not required to be specified.
- CERC to have monitoring and the surveillance mechanism to ensure that there is no hoarding of RECs.
- The RE generator who are eligible for REC, will be eligible for issuance of RECs for the period of PPA as per the prevailing guidelines. The existing RE projects that are eligible for REC would continue to get RECs for 25 years.
