New regulations announced by the Indian government reward the renewable energy producers not only for the generating power but also for preventing emission of greenhouse gases into the atmosphere.
The new rules would allow the renewable energy power plants to increase their scope of revenue generation and thus reduce the payback period significantly. The renewable energy power plants can now either sell power to preferential tariff rates or sell the electricity generation and environmental benefits of the project separately.
The renewable energy power producers would earn renewable energy certificates for every megawatt hour of electricity generated. A central authority would be established which would be responsible for distribution of these certificates. Any entity which has the obligation to purchase power generated from renewable energy sources can buy renewable energy certificates from these power producers to meet their targets. (more…)







