India

India has not finalized an MRP. It is expected that PMR support will:

• Build and integrated GHG data management system and develop an off-grid Renewable Energy Certificate (REC) program; and
• Expand  sectoral coverage of the Perform Achieve and Trade (PAT) system.

Emissions Trading

• The Perform Achieve Trade (PAT) System is a market-based mechanism under NMEEE to enhance energy efficiency in energy intensive industries, known as Designated Consumers (DCs)
• DCs will be given Specific Energy Consumption (SEC) targets to meet over a period of three years
• If they surpass energy savings above the target benchmark, they qualify for earning Energy Saving Certificates (ESCerts), which could be traded with DCs who fall short of their given targets
• All entities who do not meet their targets will need to buy ESCerts or pay penalty
• PAT is targeted at saving 6.6 mMTOE which amounts to an avoided capacity of 5623MW over a period of three years

Carbon Tax

• On July 1, 2010 India introduced a nationwide carbon tax of 50 rupees per metric tonne ($1.07/t) of coal both produced and imported into India
• The carbon tax revenue will help finance a National Clean Energy Fund (NCEF)

Offset and/or Other Emission Reduction Crediting Programs

Renewable Energy Trading Certificates

• Under Indian Electricity Act 2003, the State Electricity Regulatory Commission (SERC)s set targets for utility companies to purchase some percentage of their total power from renewable energy sources. These targets, called Renewable Purchase Obligations (RPOs), vary from state to state due to the potential of renewable energy.
• If the utility company is unable to buy its share of renewable energy, it can compensate that by buying the Renewable Energy Certificate (REC) from the market to make up the shortfall
• Under the REC Mechanism, when Renewable Energy is generated (solar, wind, biomass, etc), the energy is divided into two components – the physical commodity electricity and a tradable certificate, which is the REC.
• The commodity electricity is sold to the distribution company/utility or user at a mutually agreed tariff while the REC can be traded in the exchange. The utility companies can make up for their shortfall in meeting the RPO targets by buying the RECs from the exchange
• The denomination of each REC is 1 MWh (1 REC = 1000 units (kWh) of electricity generated). In other words, the electricity producer can sell 1 REC for every 1000 units of electricity generated.