Nand Lal Sharma Chairman & Managing Director, SJVN informed that SJVN’s Flagship 1500 MW Nathpa Jhakri Hydro Power Station has been Registered for Trading of International Renewable Energy Certificates (IREC). Renewable Energy Certificate (REC) mechanism is a market-based instrument to promote renewable energy and facilitate compliance of Renewable Purchase Obligations (RPO).
Nand Lal Sharma said that globally to meet the commitments to sustainability, climate change mitigation and to push industries towards renewable energy various governments came up with Renewable Purchase Obligations (RPO). By Industries RPO can be complied with either by generating or purchasing the required quantum of renewable energy.
Sharma further told that to address the mismatch between 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. RPO can also be complied by purchasing the certificate (REC) from the energy exchange. Purchasing of one REC allows the buyer to claim the consumption of one MWh of renewable energy.
Nand Lal Sharma further informed that now 1500 MW Nathpa Jhakri Power Station has been registered for trading of RECs from 01.01.23 to 31.12.27. 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 crores annually for company.
