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Renewable Energy Certificate Framework Prophesied to be knocked off

<p>Renewable Energy Certificate Framework was designed to provide for a roadmap for increasing the share of renewable in the total generation capacity in the country. Renewable Energy (RE) sources are not evenly spread across different parts of the country, some states like Gujarat, Rajasthan and Tamil Nadu, where there is very high potential of RE sources and states like Delhi where the potential of RE sources is not that significant. REC Framework enables and promotes to harness the RE potential beyond the RPO level fixed by the SERCs. As high cost of generation from RE sources discourages the local distribution licensees from purchasing RE generation beyond the RPO level, REC framework seeks to create a national level interest and market for such generators to recover their cost.&nbsp;&nbsp;</p> <p>Small RE Generators (Small Hydro) connected to Discoms of State usually does not have feasible options to sell electricity outside state due overburdened wheeling and transmission charges. Such RE generators usually supply power to state Discoms and carting off REC mechanism may force them to loose an option to sell the renewable energy at weighted average power purchase cost of the distribution company, owing to non-issuance of REC on the supplied power.&nbsp;</p> <p>The Distribution companies, Open Access consumer, Captive Power Plants (CPPs) will be left only with the option of purchasing the RE Power to meet their Renewable Purchase Obligations (RPO) and imposition of Open Access charges (wheeling &amp; transmission charges) will make inter-state supply of power unfeasible. This may also jeopardies compliance of RPO by the obligated entities specifically in states having inadequate renewable energy sources.</p> <p>Also States with surplus renewable capacities, their Discoms will be reluctant to buy RE Power beyond RPO targets at a price higher than conventional power. Subsequently, addition of Renewable Energy capacities in Renewable rich states will impede. This will be against the objective of ambitious Renewable Energy Targets set by the Government to achieve 175 GW of Renewable Energy by 2022.</p>