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July

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REC regulations – Second Amendment – Resolving important issues

by Harini

Subsequent to issuing the draft Second Amendment REC Regulations in April, CERC on 10th July issued a final version of this Amendment. This new regulation will be known as Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate of Renewable Energy Generation) (Second Amendment) Regulations, 2013.

Some of the important amendments made in this document are given below:

  1. The validity of Certificates issued under the Principal Regulations is extended to 730 days from the date of their issuance
  2. There is no cap on the minimum capacity of grid connected renewable energy generation project eligible for registration for RECs
  3. The words “preferential tariff” has been replaced by the words “tariff, for sale of electricity including the environmental attributes, determined under section 62 or adopted under section 63 of the Act by the Appropriate Commission.” 
  4. As per this amendment, Electricity Duty waiver benefit has been removed as one of the disqualification criteria for eligibility for issuance of certificate on self consumption of a Captive Generating Plant (CGP) under REC scheme
  5. Application to the Central Agency for issuance of certificates can now be made within 6 months from the date of generation. This is provided that the said application is made on 10th, 20th or last date of the month.
  6. A new sub-clause has been added under clause (1) of Regulation 5 of Principal Regulations that a renewable energy generator to be qualified for issuance of RECs cannot sell electricity generated from the plant either directly or through trader, to an obligated entity for compliance of Renewable Purchase Obligation (RPO) by such an entity.
  7. A renewable energy generator including CGP is allowed to retain certificates to fulfill its RPO after certification and verification of concerned State agency and informing the Central agency about the details of said certificates retained. This retention is however not allowed for its group of companies for fulfilling their RPO.

For further details, the original document containing the Notification for REC Second Amendment can be downloaded here and its Statement of Reasons can be downloaded here.

6 thoughts on “REC regulations – Second Amendment – Resolving important issues

  1. Avinash Bachu

    As per point 2, you mentioned that there is no cap on minimum capacity required for availing RECs.

    But when I went through the amendments there is no such clause on minimum capacity either in CERC amendments or in APERC amendments. Please do share some light with proper proof on your point.

    we have a multiplex in Anantapur and everymonth we incur about 2.5 lacs for electricty bills. Can we go for captive consumption.

    Reply
    1. Pradeep

      Dear Mr.Avinash,

      The ‘Statement of Objects and Reasons’ for REC Principal Regulations of 2010 mention specifically that the minimum limit is 250 KW. However, this lower limit has been removed through the Second Amendment.

      You can definitely go for captive consumption. Another option to explore is the Net Metering Scheme under which you can only Net Energy consumed from the Grid (after deduction of Solar Power generated) will be charged. This can make a huge difference if you are being billed/charged under the LT-II commercial category.

      Kindly let us know if we can help you further. Please send an email to pradeep@efficientcarbon.com / harini@efficientcarbon.com with your complete requirement details in case you wish to pursue the option of Solar PV Installation at your multiplex.

      Good day.

      Reply
  2. Chandrasekhar

    Dear Ms. Harini:

    We want to set up a 100 Kwp roof-top solar plant under REC mechanism. The entire solar power generated will be for captive consumption. (at present we have a 2000 kva connected load from the state utility @11 kv) and stepped down to 415 v through the transformer installed in our premises..

    Could you please clarify, at what voltage we need to connect the solar power line to the grid to make it `deemed as injected into the grid’ so the entire generation becomes eligible for REC? Thank you

    Reply
    1. Harini (Post author)

      Dear Mr. Chandrasekhar,

      Thank you for your message.
      As per the metering protocol document released by APTRANSCO, for a solar power plant to be set up for captive consumption under REC route, the plant needs to be connected to 11 kV line to be eligible for RECs.
      Please refer to the document in the following link for further information: http://www.aptransco.gov.in/webdata/meteringprotocol.pdf

      Kindly drop us an email at harini@efficientcarbon.com or pradeep@efficientcarbon.com to let us know how we can assist you through our services.

      Thank you and have a good day.

      Regards,
      Harini

      Reply
  3. Venkat Raju

    Dear Ms.Harini:

    Thanks a lot for your informative blogs and it is very useful to go thro these blogs. As I am a layman to this field, I request you to send some information regarding REC conditions for 100kW solar system erection and also the subsidy benefits , Carbon credit benefits etc along with the same. As ours is a solar structural company, our clients are asking for the same. I will be thankful to you if the information given.

    Reply
    1. Harini (Post author)

      Dear Mr. Venkat Raju,

      Thank you for your kind words. Please go through the following links on our website for information some basic information:

      http://efficientcarbon.com/services/energy/renewable-energy-certificates/about-recs
      http://efficientcarbon.com/services/energy/renewable-energy-advisory/frequently-asked-questions
      http://efficientcarbon.com/blog/revision-of-off-grid-and-decentralized-solar-applications-bench-mark-cost-for-2013-14

      You could drop us a email at harini@efficientcarbon.com or pradeep@efficientcarbon.com for any further queries that we can assist you with.

      Thank you and have a good day.

      Regards,
      Harini

      Reply

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