Projection of demand supply of renewable energy certificates for selected states for the period 2012-16
Student name: Mr Kaushal Rastogi
Guide: Dr Najmur Rahman
Year of completion: 2012
Host Organisation: ICRA Management Consulting Services Ltd.
Supervisor (Host Organisation): Mr Rahul Yenumula
Abstract: This study deals with demand and supply analysis of a few selected states. It provides an overview of
Renewable Energy Certificate (REC) mechanism in India, and regulatory bodies involved in issuing the
certificates.
The National Action Plan for Climate Change (NAPCC) announced by the Prime Minister of India on
June 30, 2008 envisages several measures to address global warming. One of the important measures
identified involves increasing the share of renewable energy in total electricity consumption in the
country. NAPCC set the target of 5% for renewable energy purchase for FY 2009-10 against the current
level of 3.5%. Further NAPCC envisages that this target will increase by 1% for the next ten years.
This means NAPCC envisages renewable energy to constitute approximately 15% of the energy mix of
India. This would require a quantum jump in deployment of renewable energy across the country. Here it
should be noted that in India hydro power plants of capacity less than 25 MW are considered as
renewable. Strong policy measures and proactive regulatory framework and innovative financing
instruments would be required, if the desired level of penetration of renewable energy is to be achieved.
One such policy instrument prescribed in NAPCC is Renewable Energy Certificate (REC) mechanism
which would enable a large number of stakeholders to purchase renewable energy in a cost effective
manner.
Key Words: REC mechanism, renewable purchase obligation, operational framework of REC, obligated
entities, demand and supply analysis
