Trading of power and Renewable Energy Certificates (RECs) A renewable energy credit (REC)â€”also sometimes referred to as a renewable energy certificate or green tagâ€”is created for each megawatt-hour (1 MWh, or 1000 kilowatt-hours) of renewable electricity generated and delivered to the power grid. Technologies such as wind, solar PV, solar thermal, biomass, bagasse, black liquor and small hydro are eligible to earn RECs. Central Electricity Regulatory Commission (CERC) has notified Regulation on Renewable Energy Certificate (REC) in fulfilment of its mandate to promote renewable sources of energy and development of market in electricity. The framework of REC is expected to give push to RE capacity addition in the country.
Bilateral power trading A transaction for exchange of energy (MWh) between a specified buyer and a specified seller, directly or through a trading licensee or discovered at Power Exchange through anonymous bidding, from a specified point of injection to a specified point of drawl for a fixed or varying quantum of power (MW) for any time period during a month. Electricity Act 2003 has distinguished "Power Trading" as a separate licensed activity with the objective of developing power market in India to maximize resource utilization by promoting healthy competition among power players. For this reason, Power Trading is referred to as "purchase of electricity for resale thereof". CERC/SERCs have prescribed stringent "non-discriminatory open access" regulations and have also granted Inter-State Trading Licensees to 45 companies (as on July 2009). CTU/STUs have also defined detailed open access procedures to promote power trading operations in the country. The demand supply gap among various utilities during day and month provides opportunities for power trading. With tightening of grid discipline by CERC regulation, the utilities are persuaded to plan their demand supply gap in advance. This provides power trading a huge potential for growth. At .Kreate, we endevour timely payment for every transaction including energy and transmission charges as per the contract terms. Our payment track record is a testament to our commitment for transparency and timely settlement of accounts.
Banking of Power Banking means residual electrical energy after utilization by the Exclusive or Partly Exclusive Consumer or captive consumption out of the injected energy in a month into the transmission and/or distribution system of Corporation/ESCOMs, which will be utilized for its own use or for wheeling to its Exclusive or Partly Exclusive Consumers at a later date/month, as per the terms and conditions set forth in this agreement.
Meeting Renewable Purchase Obligations (RPOs) The Renewable Purchase Obligations (RPO) has been the major driving force in India to promote the renewable energy sector. Every Obligated Entity may meet its RPO target by way of (i) Own generation or procurement of power from RE developer or (ii) Purchase from other licensee or (iii) Purchase of renewable energy certificate or (iv) Combination of any of the above options. We conform to all State-wise regulations laid out across India.
Group captive power plants A group captive scheme is where someone develops a power plant for collective usage of many commercial consumers. The developer should have at least 26% of the equity and has to consume at least 51% of the power produced. The term "captive power scheme" was introduced in the Electricity Rule, 1995.