Ministry of Power Redesigns Renewable Energy Certificate (REC) Mechanism.


The Ministry of Power on 29th September 2021 has notified amendments to the existing Renewable Energy Certificate (REC)  mechanism in order to align the ‘mechanism’ with the emerging changes in the power scenario and also to promote new renewable technologies.

The proposed changes will provide some flexibility to the players, additional avenues, rationalization and also addressing the RECs validity period uncertainty issues and these changes will be implemented by CERC through regulatory process.

The Salient features of changes proposed in revamped REC mechanism are:

  • The Validity of REC would be perpetual i.e., till it is sold.
  • The RE generator who are eligible for REC, will be eligible for issuance of RECs for the period of PPA as per the prevailing guidelines.  The existing RE projects that are eligible for REC would continue to get RECs for 25 years.
  • RECs can be issued to obligated entities (including DISCOMs and open access consumers) which purchase RE Power beyond their RPO compliance notified by the Central Government.
  • No REC to be issued to the beneficiary of subsidies/concessions or waiver of any other charges. The FOR to define concessional charges uniformly for denying the RECs.
  • CERC to have monitoring and the surveillance mechanism to ensure that there is no hoarding of RECs.
  • Floor and forbearance prices are not required to be specified.


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