Section 11 in The U.P. Electricity Regulatory Commission (Promotion of Green Energy Through Renewable Purchase Obligation) Regulations, 2010
11. Renewable Energy Pricing under REC mechanism.
- The generating company (i.e. eligible entity), after obtaining accreditation, shall sell the electricity so generated and subsequently obtains and sells renewable energy certificates (representing environmental attributes associated with renewable energy generation) in the following manner:(a)it shall sell the electricity generated either -(i)to the distribution licensee(s) of the State, at a price not exceeding the pooled cost of power purchase of such distribution licensee (s);(ii)to any other licensee, open access consumer or a captive user in the State at a mutually agreed rate;(iii)to any person through power exchange.Explanation. - For the purpose of these regulations 'Pooled Cost of Power Purchase' means the weighted average pooled price at which the distribution licensee purchased electricity including cost of self-generation, if any, in the previous year from all the long-term and short-term energy suppliers, but excluding those based on renewable energy sources, as the case may be.(b)it shall obtain certificates from the Central Agency based on certified injection report of SLDC;(c)it may sell the certificates in power exchange within the band of a floor price and a forbearance price subject to the provisions of CERC REC Regulations :Provided that the Central Commission may, in consultation with the Central Agency and Forum of Regulators, from time to time provide for the floor price and forbearance price separately for solar and non-solar certificates :Provided further that, with the progressive development of the electricity sector, the pricing methodologies for electricity component and renewable energy certificates shall be reviewed at periodic intervals as may be considered appropriate by the Commission.
