In a move that is certain to provide further impetus to the REC market, the Government has recently decided to ask all Central PSEs to set up renewable energy projects or voluntarily procure Renewable Energy Certificates (RECs) as a part of their Energy Management Programme for sustainable development. The scope of the Energy Management Programme has been expanded by including Renewable Energy as a specific activity to be pursued by the Central PSEs.
The Department of Public Enterprises under the Ministry of Heavy Industries and Public Enterprises has issued Office Memorandum on 19th December, 2011 which, inter alia, calls for use of renewable energy. The central PSEs can implement carbon management plan by participating in any of the Missions under the National Action Plan under Climate Change. They may purchase Renewable Energy Certificates to offset their carbon footprints. This decision, which will become a part of the MoUs signed by the CPSEs and the administrative Ministries/ Departments is expected to accelerate the growth of the emerging market for RECs in the country and make it a valuable business model.
Welcoming the decision, Secretary, Ministry of New and Renewable Energy Shri Gireesh B. Pradhan said that the move is expected to give a big boost to the efforts of the Ministry, which has been providing incentives for setting up of the renewable energy projects in the country.