RENEWABLE ENERGY CERTIFICATE (RECs)

  RENEWABLE ENERGY CERTIFICATE (RECs)    

CONTEXT:- 

Renewable energy (RE) companies had moved Delhi High court setting and exemption for renewable energy certificates (RECs) under the GST.

 ABOUT REC:- 

# Renewable energy certificates (REC) is a policy instruments to catalyzed the development of renewable energy.

# Renewable energy certificates (REC) are also known as green energy certificates  or tradable renewable certificates are proof that energy has been generated from renewable sources.

# Each REC represent's the environmental benefits of 1MWH of renewable energy generation.

# When you purchase RECs , Renewable energy is generated on your behalf and you contribute for the betterment of the society.

SIGNIFICANCE:- 

# It is a market based mechanism which will help the  states meet their regulatory requirement ( such as renewable purchase obligation RPOs) by overcoming the geographical constraints on existing renewable potential in different states.

# RECs help the incentivizing the production of renewable energy over and above the RPO state limit as tradable certificates are not constrained by the geographical limitations of commodity electricity.