The Rajasthan Electricity Regulatory Commission (RERC) has released a staff paper on projects registered under renewable energy certificate (REC) mechanism in the state.
The paper analyzes the issues being faced by wind and solar generators which are registered under REC mechanism and have power purchase agreements (PPAs) with the state distribution companies (DISCOMs). The paper suggests a path forward for the generators as well as DISCOMs.
Renewable energy generators have two options: either sell the renewable energy to DISCOMs at the preferential tariff fixed by the commission, or to opt for REC mechanism.
Under REC mechanism, the environmental attribute can be exchanged in form of REC and electricity component (‘brown energy’) can be sold to DISCOMs. Read More