International Renewable Energy Certificates: An Exercise in Redundancy in the Indian Market?

- Maathangi Hariharan & Dr. Shouvik Kumar Guha

Taking long strides, the Indian renewable energy market is a fast-growing compliance market. Recently, India has also agreed to the issuance of international renewable energy certificates and signed agreements with the centralized issuer in this regard. These agreements were signed around the time trading in the power exchanges had been picking up pace. While India has both the domestic and international renewable energy certificate systems in place, numbers indicate that the latter has not gained sufficient traction amongst Indian power generators and users. In light of this, the authors explore the international renewable energy certificate system, and its ability to sit in tandem with the domestic renewable energy certification system. Further, the authors provide an in-depth understanding of the domestic renewable energy certificate trading system. Finally, they explore the success (or lack thereof) of the international renewable energy certification specifically in the Indian market.