RECs will be issued for electricity generated from renewable sources, such as wind power, #solar power, small #hydropower, biomass, #biofuel, municipal waste, black liquor and other sources approved by MNRE. Obligated entities can use RECs to meet their renewable purchase obligations (RPOs).
REC is issued to RE generators that generate 1 MW of Power into the grid. And only those units connected with the grid will be eligible for registration and issuance of REC that have a minimum of 250 kW of power generation capacity. Thesecertificates can be used by obligated entities to meet their RPO requirements which are traded on the open market on the 3 energy exchange Boards in the country, India Energy Exchange Ltd., Delhi, Power Exchange India Limited, Mumbai and the Hindustan Power Exchange Ltd.The price of RECs is determined by supply and demand in the market

So there are two types of Energy buyers in the market: the obligated entities, like distribution companies, open access market, and industries consuming captive powers, and the 2nd is voluntary entities, including corporations under CSR and individuals. Now to understand How REC works, we first need to understand what are Renewable Purchase Obligation or RPO

Now RPO is imposed on entities, such as distribution companies, to ensure that a certain percentage of their electricity is generated from renewable sources. Under the Electricity Act 2003, SERCs fix a minimum % of the total consumption in the area of a distribution licensee for the purchase of energy from renewable sources.

Now There are two types of RECs – Solar and Non-Solar RECs. The following entities must conform to the rules stated in the notification to be eligible for the issuance of REC.

• Renewable energy generating station
• Captive generating stations based on RE sources, and lastly
• Distribution licensees and Open access consumers

Now coming to The process of Registration Process for REC. The registration process for eligible entities with the State Agency will include the accreditation of entities connected to the intra-state transmission system by the RLDC of the region where the eligible entities are located.
Stage 1 is the Registration with the state agency.
The requirements for accreditation vary from state to state, but you will need to provide information about your renewable energy project, its capacity and its location. Once you have confirmed that your plant meets the eligibility criteria, you can apply for accreditation with the concerned state agency responsible for managing renewable energy in the concerned state. You can apply to the CERC after fulfilling the requirements for accreditation, which may vary from state to state. Still, you will typically need to provide information about your renewable energy project, such as the type of project, the capacity of the project, and its location. The CERC will issue a renewable energy certificate within 60 days of receiving your application.
You can also register with the national agency, the National Load Dispatch Centre (NLDC) once you have been accredited by the state agency.

To register with the authority, you will need to submit an application and provide the following information:
• Your name and contact details.
• The name and address of your renewable energy project.
• The type of renewable energy source that your project uses.
• The capacity of your project.
• The date on which your project was commissioned

Other Licenses needed for Renewable Energy relate Projects.
Different types of renewable energy businesses will require certain licenses and approvals apart from the accreditation. The standard licenses and documents that will be needed by the entrepreneur include

• Company Registration
• Registration with the REC
• Articles of Association and Memorandum of Association
• GST Registration
• MSME Registration
• Pollution NOC from SPCB/PCC
• Permanent Account Number (PAN)
• CEIG Approval
• Fire NOC

After accreditation, you can trade REC in the open market through recognised platforms. The validity of your registration will be 25 years.

We all can agree that there will be substantial demand for renewable energy in the future.
Renewable energy sources, such as solar and wind, are becoming increasingly affordable. Companies can save on their energy bills by shifting to renewable energy. This will be seen as more environmentally friendly practices which can improve their public image and attract new customers.

Know more:https://enterclimate.com/blog/how-to-start-a-renewable-energy-business-in-india/

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