According to reports, BSE-listed M&B Switchgear has become India’s first solar developer to get itself registered by National Load Despatch Centre for solar renewable energy certificates. The company has commissioned a 1.5 MW solar plant, which is expected to generate 1,500 REC. RECs are market-tradeable generation-based certificates. The minimum and maximum prices for each solar REC have been fixed at Rs 9,300 and Rs 13,400 respectively, up to 2017.
M&B plans to put up raise its solar capacity to 6 MW and is expected to put the entire capacity under the REC mechanism. The company had come out with its initial public offering in September 2011. On the BSE, its share last closed at Rs 67.60.
Securing clearance for REC is a two-step process, says Mr Vishal Pandya, Director, REConnect, a consultancy that helps companies get and trade RECs. The first is accreditation, which is given by the state nodal agency. Three projects have got themselves accredited so far—Jain Irrigation (8 MW), Kanoria Chemicals (5 MW) and Numeric Power (1 MW). On April 4, M&B has cleared the second step too, which is to get registered by the NLDC.