India recently established regulations on renewable energy certificates (RECs), which are bought by businesses in order to meet statutory obligations to address the mismatch between avaibility of renewable energy.”

This concept seeks to address the mis match between avaibility of renewable energy sources and the requirement of the obligated entities to meet their renewable purchase obligation.” a release by the government said. Currently, India’s renewable energy accounts for just 8 per cent of its total capacity of around 150000MW,but the government has indicated that it intends doubling renewable energy generation to 25000 MW within the next four years.

The value of certificates would be equal to 1MW hour of electricity and a central energy would administer certificate trading between renewable power generators. Clean energy producers could either sell their power at a preferential rate set by the provincial power regulators or market the electricity generation and environmental attributes connected to the renewable power separately, Finsoul,which structures and guides greenhouse gas emission reduction projects, believes.