The Central Electricity Regulatory Commission (CERC) recently published draught renewable energy certificate regulations, which will allow renewable generators, captive power projects, distribution companies (DISCOMs), and open access consumers to issue renewable energy certificates.
Stakeholders can submit comments and objections to the CERC on or before March 15, 2022. Following stakeholder consultation, the National Load Despatch Centre, the central agency for these regulations, will issue a detailed procedure within three months of notification of these regulations.
Renewable energy projects and captive power projects that generate renewables will be eligible to issue certificates if their tariffs have not been determined or adopted in accordance with sections 62 or 63 of the Electricity Act.
Furthermore, for RPO compliance, such projects’ electricity must not be sold through an electricity trader or in power exchanges. They may also be eligible if they have not previously used any waivers, concessional charges, or electricity banking services. Renewable energy certificates will be issued to DISCOMs and open access consumers who buy more renewable energy than their RPO allows.
To obtain these certificates, eligible entities must go through a two-step process that includes accreditation from state and regional agencies and certificate registration and certificate issuance, exchange, and redemption.
The state agency will grant accreditation for certificates under the REC regulations 2010 to entities connected to the intra-state transmission system. Accreditation for entities connected to the interstate transmission system will be provided by the Regional Load Dispatch Centre where the entities are located.
The entities will then apply to the central agency for certificate registration. The registered entities can apply for the certificates within six months of registering with the Central Agency. After six months, no certificate will be issued.
The Central Agency will either issue or reject the certificate within fifteen days of receipt of the application. The applicant will be informed of the reason for the rejection. The certificates will be issued based on the electricity generated and injected into the grid, or deemed to be injected in the case of self-consumption, by eligible captive generating stations based on renewable energy sources, and will be duly accounted for in the energy accounting system.
Following that, the entities will apply to the central agency for certificate registration. Within six months of registering with the Central Agency, registered entities can apply for certificates. No certificate will be issued after six months. Within fifteen days of receiving the application, the Central Agency will either issue or reject the certificate. The reason for the rejection will be communicated to the applicant.
The certificates will be issued based on the amount of electricity generated and injected into the grid by eligible captive generating stations using renewable energy sources, or deemed to be injected in the case of self-consumption, and will be properly accounted for in the energy accounting system. The issued certificates will be valid until they are redeemed.