Renewable Energy Certificates (RECs) better called as “Solar Renewable Energy Certificates” (SREC) represent the attributes of electricity generated from renewable energy sources. These attributes are unbundled from the physical electricity and the two products-the attributes embodied in the certificates and the commodity electricity-may be sold or traded separately. In other words, one REC represents that 1MWh of energy is generated from renewable sources. RECs are expected to become the currency of renewable energy markets because of their flexibility and the fact that they are not subject to the geographic and physical limitations of commodity electricity. RECs can be used by the obligated entities to demonstrate compliance with regulatory requirements, such as Renewable Purchase Obligations.
Depending on our customer requirements and demand, ONP team offers various options on REC like:
- APCC + REC
- Open Access + REC
- Spot sale + REC
ONP offers Start-to-end REC projects “design, execution and manage”. ONP has international and domestic tie-up with best of brands and clients. We execute REC projects ranging from 250KW to 50MW and above.
| Salient Features of Renewable Energy Certificates | |
|---|---|
| Participation | Voluntary |
| REC Denomination | 1 MWh |
| Validity | 365 Days after issuance |
| Categories | 1.Solar REC 2.Non-Solar REC |
| Trading Platform | Power Exchanges only |
| Banking | Not Allowed |
| Borrowing | Not Allowed |
| Transfer Type | ingle transfer only, repeated trade of the same certificate is not possible |
| Penalty for Non-compliance | ‘Forbearance’ Price (Maximum Price) |
| Price Guarantee | Through ‘Floor’ Price (Minimum Price) |
| Price Discovery Mechanism | Closed Double-sided Auction* |
| Trading Calendar | Last Wednesday of the month (T day) |
| Trading Period | 1300-1500 hrs (T day) |
| Market Clearing | 1700 hrs(T day) |
| Financial Settlement | Buyers pay upfront (T day) and Sellers receive on (T+1 day) |