The Forum of Regulators (FOR), an electricity regulatory body has introduced renewable energy certificates for renewable energy generators with capacity untied in power purchase agreements (PPA). This certificate will be issued only to renewable energy generators and the purchase of the certificate would be considered as purchase of renewable energy.
- The renewable energy technologies approved by the ministry of non-renewable energy
- Grid connected renewable energy generators of at least 250 kw capacity
- Renewable electricity generated for a specified quantity.
Exchange of renewable energy certificates would be done on power exchanges approved by the Cerc. At present, Indian Energy Exchange and Power Exchange India are operational, while a third exchange is being proposed by NTPC. The ceiling price for exchange of renewable energy certificates would be decided by the respective state electricity regulatory commission, based on recommendations of the forum of power regulators (around Rs 2.5 per unit).
In a surplus scenario, the forum of power regulators has proposed that a maximum 25% of renewable energy certificates generated in a year can be carried over for next year.
Moreover, the renewable energy compliance charge would be decided by the state regulatory bodies, which would be in the range of 120% and 150% of the ceiling price of renewable energy certificates. In addition, there would be a penalty under Section 142 of the Electricity Act, 2003. The forum of power regulators has made it clear that renewable energy compliance charge and penalty would not be a “pass through” in additional revenue requirement. The amount collected can be utilised for infrastructure development to renewable energy sources.
Source: Financial Express