The International Experience: REC Mechanism
Mr. Mohit Anand heads the Market Intelligence team as Senior Consultant at BRIDGE TO INDIA. Together with his team, he is responsible for the INDIA SOLAR NAVIGATOR, India’s only dedicated online business intelligence tool that is designed to enable leading solar companies to take strategic decisions to succeed given the ever-changing landscape of the Indian market. His team is also responsible for the INDIA SOLAR COMPASS and many other market reports on solar power in India.
The Ministry of New & Renewable, Government of India, hosted a workshop on the ‘Challenges and issues in the solar RPO compliance/RECs‘ on July 24th 2012 in New Delhi. The workshop included presentations on the current scenario of solar power in India, states and Renewable Energy Certificate (REC) trading, the supply chain and financing options. Senior management executives from companies like AF Mercados, CERC, GEDA, RRECL, NLDC, IEX and Sunpower presented on these topics.
BRIDGE TO INDIA, on behalf of GIZ, presented on the international REC experience – the status of implementation of the REC mechanism in various countries and the lessons that India can learn.
- Japan, Australia and UK are countries with the most robust REC mechanisms globally
- India needs to incorporate measures – perhaps implement a system of penalties – to improve Renewable Purchase Obligations (RPO) enforcement
- India should incentivise RPO compliance through REC and increase the REC window
- India needs to heighten the price stability and increase the bankability of RECs
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