New Delhi: Miniratna PSU SJVN Ltd’s flagship 1,500 MW Nathpa Jhakri Hydro Power Station has registered for trading of International Renewable Energy Certificates (IREC), said its Chairman and Managing Director (CMD) Nand Lal Sharma on Wednesday. Renewable Energy Certificate (REC) mechanism is a market-based instrument to promote renewable energy and facilitate the compliance of Renewable Purchase Obligations (RPO).
Sharma said that to meet the commitments to sustainability, climate change mitigation and to push industries towards renewable energy globally, various governments came up with Renewable Purchase Obligations (RPO). Industries can comply with RPO either by generating or purchasing the required quantum of renewable energy.
The SJVN CMD further said that to address the mismatch between the availability of Renewable Energy and the requirement of obligated entities to meet RPO, a market-based instrument called Renewable energy certificate (REC) was introduced to promote renewable energy and facilitate compliance of RPO. Purchasing of one REC allows the buyer to claim the consumption of one MWh of renewable energy.
Sharma further informed that now 1,500 MW Nathpa Jhakri Power Station has been registered for trading of RECs from January 1, 2023 to December 31, 2027. Based on its design energy, the station can trade around 57.5 lakh RECs annually which in turn convert into an additional revenue of around Rupees 10 crore annually for company.