- Published: January 2011
- Region: India
Four-S Indian Monthly Cleantech Track Edition 3 2012
- Published: June 2012
- Region: India
- 10 Pages
- Four-S Services
Monthly update on the Indian Cleantech Sector
Solar RECs listed on power exchanges; India’s first solar Renewable REC issued to M&B Switchgear
The two power trading exchanges Indian Energy Exchange (IEX) and Power Exchange India (PXIL) commenced trading of solar renewable energy certificates (RECs), thus opening a new source of revenue generation for solar power producers. The trading of RECs makes it easy for several obligated
entities that may be required to purchase a certain quantum in either green power or RECs.
M and B Switchgears has become the first solar power producer in India to be issued 249 solar RECs by the National Load Dispatch Centre in New Delhi. The company expects to generate additional revenue of around Rs 40mn from RECs.
These certificates are tradable on the power exchanges and are bought by 'obligated entities' which are either specified consumers or electricity distribution companies. These obligated entities may be required to purchase a certain quantum of either green power or RECs. The obligations are split into non-solar and solar -- which means the obligated entities have to purchase either power from solar power projects or RECs generated by them.
M and B Switchgear, headquartered in Indore, is a manufacturer of transformers. The company also has a 2 MW solar photovoltaic power plant. In 2012-13, this plant is expected to generate close to 3,250 RECs.
The government fixes the floor and ceiling prices of RECs for a specified period. The minimum and maximum prices for solar RECs for 2012-17 are Rs 9,300 and Rs 13,400 respectively. Therefore, if M and B?s solar plant generates 3,250 RECs, the company could be richer by anywhere between Rs 30 million and Rs 43.5 million.
The company is currently planning to set up a 20 MW solar power project under the REC scheme. SHOW LESS READ MORE >
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