1. Outline  Chronology  Conceptual framework  Salient Features of REC Mechanism  Role of Central Agency  REC Procedures  Current Status

2. Chronology of Events – Concept to Implementation 12/10/20152 FOR initiated study to assess measures for increasing share of RE including Feasibility of Introducing REC Mechanism in India Jun’08 Hon’ble Prime Minister announced NAPCC recognizing Implementation of REC Mechanism as tool to promote RE Jun’08 MNRE engaged Consultant to Develop Conceptual Framework for REC Mechanism in India Aug’08 Central Electricity Regulatory Commission initiated process for Implementation of REC Mechanism in India Nov’09 CERC notified Regulations for Implementation of REC Framework Jan’10 CERC has issued Order on Forbearance and Floor Price after Public Consultation Process Jun’10 CERC Issued Order on Applicable Fee and Charges for Participating in REC Mechanism Sep’10 CERC approved Business Rules of Exchange Platform Feb’11 First Session of REC Trading Mar 30’11 CERC Designated National Load Despatch Centre as Nodal Agency under the REC Regulations Jan’10 Consultant submitted its recommendation to the Working Group on 'Policies on Renewables’ Sep’08 Consultant submitted its Exhaustive Report to MNRE on Conceptual Framework for REC Mechanism in India Jun’09 FOR has approved Model REC Regulations for adoption by SERCs Oct’09 CONCEPT TRANSACTION CERC has issued Order on Detailed Procedures for Implementation of REC Mechanism Jun’10

3. Status- RPO Regulations

4. BIO MASS HYDRO SOLAR RENEWABLE ENERGY BIO MASSGEO THERMAL SMALL HYDROWIND SOLAR BIO MASS Energy Generation GREEN ATTRIBUTE GREEN ATTRIBUTE ELECTRICITY RENEWABLE ENERGY CERTIFICATE SOLAR CERTIFICATE NON-SOLAR CERTIFICATE

5. CERC REC Regulation, 2010 – Conceptual Framework NLDC5 Electricity Component Electricity Component * Self consumption by CPPs based upon renewable generation are eligible for RECs RE Generation* Sale at Preferential Tariff Sale at Preferential Tariff REC Component Obligated Entities / Voluntary Buyers Obligated Entities / Voluntary Buyers Distribution Company / Third Party Sale/ Power Exchange Distribution Company / Third Party Sale/ Power Exchange Obligated Entities

6. RE Generator Trading 1 MWh Grid Connectivity Central Agency State Agency REC Salient Features of REC Mechanism

7. REC Framework: Eligibility Self Consumption/ Captive use Third party sale/Open Access PPA with Distribution Licensee No Promotional Wheeling No Promotional Banking No Electricity Duty Exempt Sale at Mutually Agreed Price PPA at Preferential Tariff PPA at Average Power Purchase Cost Eligible Not Eligible Eligible if All Three conditions mentioned above are met Grid Connected RE technology approved by MNRE

8. Entities involved to Operationalise REC Mechanism Central  Forum of Regulators  Central Electricity Regulatory Commission  Central Agency (National Load Despatch Centre)  Power Exchanges  Compliance Auditors State  State Electricity Regulatory Commission  State Load Despatch Centre  State Agencies  Eligible Entities  Obligated Entities

9. ACCREDITATION REGISTRATION ISSUANCE TRADE & REDEMPTION REC Procedures

10. NLDC10 Applicability & Scope Applicable to: RE Generators including CPPs RE source recognized and approved by MNRE SERCs to designate State Agencies Accreditation -six months prior to commissioning No PPA at Preferential Tariff In case of PPA After 3 years or expiry date of PPA whichever is earlier For CPPs No benefit in the form of: concessional/promotional transmission or wheeling charges, banking facility benefit and waiver of electricity duty Accreditation valid for five years.

11. Eligible Entity State Agency SLDC Verification Prior to Accreditation Application for Accreditation Confirmation of Accreditation Intimation of Accreditation 3a 3c 3b 1 2 Step Wise Schematic Description of Procedure for Accreditation Central Agency Application for availing Accreditation by Generating Co. to the Host SA Application shall contain details of Owner/Operator, Generating Station, Metering, Connectivity, Statutory, General, fees & charges, Declaration Separate Application for each RE Generation Project

12. NLDC12  NLDC designated as Central Agency.  The functions of Central Agency includes :  Registration of Eligible Entities  Issuance of Certificate  Maintaining and settling accounts in respect of the certificate  Repository of transactions of certificates and  Any other function incidental to the implementation of REC Mechanism  The NLDC to operationalise REC mechanism has developed various procedures.  Various activities in these procedures shall be undertaken in the electronic form to the extent feasible. Appointment of NLDC as Central Agency

13. Eligible Entity State Agency SLDC Power Exchange(s) Central Agency Verification Prior to Registration 2 Confirmation of Registration 3a Intimation of Registration 3b Intimation of Registration 3c Intimation of Registration 3d Schematic Description of Procedure for Registration Application for Registration 1 Information to be furnished by the applicant Owner Details, RE Generating Station details, Certificate of Accreditation Commissioning Schedule, Details of Fee & Charges, Declaration

14. NLDC14 Time Line Application accompanied with fees and charges Process of Registration Grant of Registration Furnishing the Central Agency requested details by the applicant Intimation regarding Incompleteness of application Payment of applicable registration Charges 2 days 7 days 15 days 3 Months

15. Schematic Description of Procedure for Issuance State Agency SLDC Distribution Licensee Distribution Licensee Eligible Entity Central Agency Central Agency Joint Meter Reading Application for Issuance Verification Pre-Condition Intimation of Meter Reading Regular Injection Report Intimation of Issuance Issuance of REC 1 2 3 4a 4b 4c 5a 5b

16. Schematic Description of Procedure for Redemption Obligated Entity / Buyer Obligated Entity / Buyer Eligible Entity Eligible Entity Power Exchange(s) Power Exchange(s) Offer for Sale 13:00 to 15:00 hrs 1a Bid for Purchase 13:00 to 15:00 1b Central Agency Central Agency Verification Conditions (By 15:30) Verification Conditions (By 15:30) 2 2 Confirmation Of REC validity & quantity (by 16:00) Confirmation Of REC validity & quantity (by 16:00) Central Agency Central Agency Intimation of Trade results For Extinguishing REC (By 17:00) 3 Market Clearance (Volume & Price) Reports 4

17. Home Page https://www.recregistryindia.in

18. Accreditation Details (As on 29.09.2011) Non SolarCapacity (MW)Number Wind682168 Small Hydro5912 Bio Mass35230 Bio Fuel Cogeneration31829 Urban & Municipal Waste00 Total1411239 SolarCapacity (MW)Number Solar Thermal00 Solar PV00 Total00

19. Non SolarCapacity (MW)Number Wind569121 Small Hydro5210 Bio Mass22420 Bio Fuel Cogeneration23021 Urban & Municipal Waste00 Total1075172 SolarCapacity (MW)Number Solar Thermal00 Solar PV00 Total00 Registration Details (As on 29.09.2011)

20. Issuance & Trading Month, Year Opening Balance RECs Issued RECs Redeemed Closing balance March, 20110532424108 April, 201110845032604351 May, 20114351282701850214119 June, 201114119270901638524824 July, 201124824302241856836480 August, 201136480318132509643197 Sept, 201143197728504636269685 Total 195282125597

21. Power Exchange wise Trade Details Month IEX MCV ( RECs Traded) PXI MCV ( RECs Traded) Total Trade IEX MCP (Rs/ REC)PXI MCP (Rs/ REC) March, 2011 27415042439002225 April, 2011 2600 15000 May, 2011 140024500185021500 June, 2011 15902483163851500 July, 2011 1466839001856815551550 August, 2011 2209630002509618001710 Sept,2011 413854977463622300

22. Highlights Highest ‘Capacity’ Registered : 36 MW, Wind (Gujarat) (Gujarat Fluorochemicals Limited) Smallest ‘Capacity’ Registered: 0.35 MW, 8 Projects Average ‘Capacity’ Registered: 6.4 MW Total Registered Buyers: 454 Buyers ( 5 Voluntary Buyers)

23. Concerns of stakeholders Extension of applying period of REC from 3 months to 6 months Validity of RECs Periodicity of Compliance – Quarterly or Six monthly Floor/Forbearance Price – Longer visibility of 5 years

24. Concerns of stakeholders Long Term RPO Trajectory: For next 5 to 10 years Same RPO level across the country Strong Enforcement Mechanism CPP eligibility: Electricity Duty waiver Vintage based floor price for solar REC – Multiplier linked to reduction in floor price 24

25. Weblinks www.nldcindia.in www.recregistryindia.in www.cercind.gov.in www.forumofregulators.gov.in www.mnre.gov.in