| Redemption of Renewable Energy Certificates |
STEP-WISE DESCRIPTION OF THE PROCEDURE
 The basic procedure for redemption of renewable energy certificates shall include following steps:
STEP 1: The total quantity of Certificates ('Solar' and 'Non-Solar' separately) placed for dealing on the Power Exchange(s) by the eligible entity shall be less than or equal to the total quantity of valid Certificates held by the eligible entity as per the records of the Central Agency. The renewable energy certificates shall be dealt in the Power Exchange within the price band as specified by CERC from time to time.The Eligible Entity shall place for dealing of renewable energy certificates, both 'Solar' and 'Non-Solar' Certificates, on any Power Exchange authorised to deal in renewable energy certificates by CERC. The total quantity of Certificates ('Solar' and 'Non-Solar' separately) placed for dealing on the Power Exchange(s) by the eligible entity shall be less than or equal to the total quantity of valid Certificates held by the eligible entity as per the records of the Central Agency. The renewable energy certificates shall be dealt in the Power Exchange within the price band as specified by CERC from time to time.
STEP 2:During the time the bidding window opens in the Power Exchange,
the eligible entities shall place their offers and the buyers1 shall place their
bids through the trading platform of the respective Power Exchange.
STEP 3:On closure of the trading window, the Power Exchange(s) shall send
the maximum bid volumes for each of the eligible entity, which has placed
offers on that Power Exchange, to the Central Agency for verification of the
quantity of valid RECs available with the concerned eligible entity for
dealing on the Power Exchange(s).
STEP 4: The Central Agency shall check the combined maximum bid volume
in the Power Exchange(s) for each eligible entity against the quantity of valid
RECs for that entity for both 'Solar' and 'Non-Solar' Certificates. The Central
Agency shall send a report to Power Exchange(s) confirming the availability
of the valid RECs with the eligible entity. In case the combined maximum
bid volume placed for dealing in the Power Exchange(s) exceeds the quantity
of valid RECs held by the eligible entity as per the records of the Central
Agency, then, the Central Agency shall advise the Power Exchange(s) to
exclude such bid(s) while working out the Market Clearing Price and the
Market Clearing Volume.
STEP 5: The Power Exchange(s) shall work out the Market Clearing Price
and the Market Clearing Volume taking into account the advise received
from the Central Agency and send the final cleared trades to the Central
Agency for extinguishing of the RECs sold in the records of the Central
Agency. The certificates will be extinguished by the Central Agency in the
'First-in-First-out' order.
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