The REC Mechanism in India

May 26, 2010

The REC Mechanism in India

An Introduction

Renewable Energy Certificates (RECs) are a market-based instrument to promote RE power. The REC is a policy instrument which provides evidence that an electricity generator has produced a certain quantum of power from a renewable energy source such as wind, solar, biomass, waste to energy etc.

An REC is created when one megawatt hour of electricity is generated from an eligible renewable energy resource. It represents the entire benefit of renewable energy based electricity over electricity from non-renewable resources. The renewable energy certificates are a good option for addressing the constraints related to the site specific nature of many renewables.

The potential of various RE sources in India, excluding solar energy, is shown in Figure 1.

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