Wind Energy

Incentive Mechanisms in India

The incentive package for renewables in India is shifting from a combination of fixed FIT + accelerated depreciation to a variable price mechanism which is a combination of market pricing, and Renewable Energy Certificates (RECs)
Revenue can increase from 90 USD/MWh under FIT to 180 USD/MWh under Group Captive



RECs have been trading since March-11 in month auctions held in the two power exchanges
Demand Side;15 States have issued final REC regulations, and a further 7 have enacted draft legislation. Demand for RECs is dominated by 23 utilities in six state which together account for 44.8 GWh p.a. of REC demand till 2017
Supply Side; As of Jul-11, 160 projects producing 1040 MW of power have been accredited to receive RECs Demand at 451k RECs has been 2.9x supply of RECs. So far, 79.2k RECs (51% of Supply) have sold at an average price of INR 1612/REC, which is 7.4% higher than the floor price