Renewable energy certificate
A renewable energy certificate is a tradable record that a quantity of electricity was generated from a renewable source. It separates the green claim from the power itself, so a buyer far from the plant can hold the claim and use it to meet a renewable purchase obligation.
In India certificates are issued under the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022. A central agency registers eligible entities, issues the certificates, and extinguishes each one once it is redeemed.
The Statement of Reasons the Commission issued with these regulations on 11 June 2022 explains who can receive them: renewable generating stations, captive renewable plants, and distribution licensees or open access consumers that buy renewable power beyond their obligation. Capacity already sold to an obligated buyer for compliance does not earn certificates, so the same green attribute is not counted twice.
Prices are discovered on power exchanges or agreed between eligible entities and electricity traders. The Ministry of Power notification of 27 September 2025 on renewable consumption obligations accepts certificates issued under these regulations as one way to meet that obligation.