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Green shoots in RECs
January 2017
Renewable energy certificate (REC) mechanism, a market-based instrument introduced in 2010 to promote renewable energy and facilitate compliance of renewable purchase obligations (RPOs), has not received an enthusiastic response from the obligatory entities till recently.
Clarity on longevity of RECs must to promote RPO mechanism
January 2017
Success of the RPO policy primarily depends on ensuring that obligated entities comply with this mechanism. This can be enforced through stricter compliance regulations and penalties for non-obligating entities. Possibly, if non-compliant entities can be mandated to purchase REC´s corresponding to their obligation for a calculated period of around 6 months - 1 year in the past, this may support clearing out of the current pending REC´s that are lying unredeemed.

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