India's REC market needs simplicity to grow

Jul 16, 2012 - Trading with renewable energy certificates (REC) in India needs to become simpler and "hassle-free" to attract more participants, The Times of India quoted the chairman of the Central Electricity Regulatory Commission as saying.

At a workshop on the functioning of the domestic REC system on Friday chairman Pramod Deo explained that many companies that were interested in REC trading were being discouraged by the complex trading procedures and existing obstacles. He called for the formation of a consortium of renewable energy generation and distribution-focused agencies to help boost the popularity of the REC market.

Deo added that India's REC market had been functioning for over a year and that for that period some 15 transactions had been completed. Of these, he noted, the majority were carried out by government entities. At the workshop, World Institute of Sustainable Energy (WISE) director-general G M Pillai proposed the introduction of a financial benefit or tax rebate or similar measures to encourage corporate participation on the REC market, Times of India said.

Companies that produce green electricity in India but do not take advantage of the existing feed-in tariffs receive RECs for the amount generated. RECs trading takes place on the last Wednesday of each month, when obliged entities such as utilities and specific consumers have to purchase RECs to offset their carbon footprint.

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