REC Eligibility Criteria

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Existing RE generators who have power purchase agreement (PPA) with the distribution licensees would not have the option of participating till the validity of their PPA.

Hence, renewable energy producers who have opted for the preferential tariff agreement with the distribution licensees are NOT eligible for the REC route. As per the CERC guidelines, a generating company is eligible to apply for registration and issuance of RECs if it meets the following criteria:

1. It has obtained accreditation from the State Agency;

2. It sells the generated electricity either

To the distribution licensee of the area in which the eligible entity is located, at a price not exceeding the pooled cost of power purchase of such distribution licensee or;
To any other licensee or to an open access consumer at a mutually agreed price, or
Through power exchange at a market determined price;
3. All REC based captive power producers shall be eligible for their entire energy generation including self consumption.

Therefore, in the light of above discussion, a solar power producer really has two options for selling the produced power: Either through the preferential tariff agreement or through the REC mechanism that utilizes market forces and feeds the Renewable Purchase Obligations (RPOs).

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