IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v22y2013icp380-392.html
   My bibliography  Save this article

Renewable energy certificate mechanism in India: A preliminary assessment

Author

Listed:
  • Gupta, Sandeep Kumar
  • Purohit, Pallav

Abstract

The Indian National Action Plan for Climate Change (NAPCC) envisages several measures to address global climate change. One of the important measures identified involves increasing the share of renewable energy in total electricity consumption in the country. This would mean NAPCC envisages renewable energy to constitute approximately 15% of the energy mix of India by 2020. To achieve the target set by the NAPCC, Indian Ministry of Power launched Renewable Energy Certificate (REC) mechanism in November 2010. However, participation in the REC markets is low and RECs have failed to attract significant investment so far.

Suggested Citation

  • Gupta, Sandeep Kumar & Purohit, Pallav, 2013. "Renewable energy certificate mechanism in India: A preliminary assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 380-392.
    • Handle: RePEc:eee:rensus:v:22:y:2013:i:c:p:380-392
    DOI: 10.1016/j.rser.2013.01.044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113000750
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2013.01.044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morthorst, P. E., 2000. "The development of a green certificate market," Energy Policy, Elsevier, vol. 28(15), pages 1085-1094, December.
    2. Eirik Amundsen & Fridrik Baldursson & Jørgen Mortensen, 2006. "Price Volatility and Banking in Green Certificate Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(4), pages 259-287, December.
    3. Murat Sirin, Selahattin & Ege, Aylin, 2012. "Overcoming problems in Turkey's renewable energy policy: How can EU contribute?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4917-4926.
    4. Tsuchiya, Haruki, 2012. "Electricity supply largely from solar and wind resources in Japan," Renewable Energy, Elsevier, vol. 48(C), pages 318-325.
    5. Schmid, Gisèle, 2012. "The development of renewable energy power in India: Which policies have been effective?," Energy Policy, Elsevier, vol. 45(C), pages 317-326.
    6. Dinica, Valentina, 2006. "Support systems for the diffusion of renewable energy technologies--an investor perspective," Energy Policy, Elsevier, vol. 34(4), pages 461-480, March.
    7. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    8. Uyterlinde, Martine A. & Junginger, Martin & de Vries, Hage J. & Faaij, Andre P.C. & Turkenburg, Wim C., 2007. "Implications of technological learning on the prospects for renewable energy technologies in Europe," Energy Policy, Elsevier, vol. 35(8), pages 4072-4087, August.
    9. Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
    10. Zhang, Huiming & Li, Lianshui & Cao, Jie & Zhao, Mengnan & Wu, Qing, 2011. "Comparison of renewable energy policy evolution among the BRICs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4904-4909.
    11. Palmer, Karen & Burtraw, Dallas, 2005. "Cost-effectiveness of renewable electricity policies," Energy Economics, Elsevier, vol. 27(6), pages 873-894, November.
    12. Vine, Edward & Hamrin, Jan, 2008. "Energy savings certificates: A market-based tool for reducing greenhouse gas emissions," Energy Policy, Elsevier, vol. 36(1), pages 467-476, January.
    13. Miketa, Asami & Schrattenholzer, Leo, 2004. "Experiments with a methodology to model the role of R&D expenditures in energy technology learning processes; first results," Energy Policy, Elsevier, vol. 32(15), pages 1679-1692, October.
    14. Klessmann, Corinna & Held, Anne & Rathmann, Max & Ragwitz, Mario, 2011. "Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?," Energy Policy, Elsevier, vol. 39(12), pages 7637-7657.
    15. Verbruggen, Aviel & Lauber, Volkmar, 2009. "Basic concepts for designing renewable electricity support aiming at a full-scale transition by 2050," Energy Policy, Elsevier, vol. 37(12), pages 5732-5743, December.
    16. Lipp, Judith, 2007. "Lessons for effective renewable electricity policy from Denmark, Germany and the United Kingdom," Energy Policy, Elsevier, vol. 35(11), pages 5481-5495, November.
    17. Bergek, Anna & Jacobsson, Staffan, 2010. "Are tradable green certificates a cost-efficient policy driving technical change or a rent-generating machine? Lessons from Sweden 2003-2008," Energy Policy, Elsevier, vol. 38(3), pages 1255-1271, March.
    18. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935.
    19. Nielsen, Lene & Jeppesen, Tim, 2003. "Tradable Green Certificates in selected European countries--overview and assessment," Energy Policy, Elsevier, vol. 31(1), pages 3-14, January.
    20. M. Voogt & M.G. Boots & G.J. Schaeffer & J.W. Martens, 2000. "Renewable Electricity in a Liberalised Market – The Concept of Green Certificates," Energy & Environment, , vol. 11(1), pages 65-79, January.
    21. Morthorst, P. E., 2001. "Interactions of a tradable green certificate market with a tradable permits market," Energy Policy, Elsevier, vol. 29(5), pages 345-353, April.
    22. Mitchell, Catherine & Connor, Peter, 2004. "Renewable energy policy in the UK 1990-2003," Energy Policy, Elsevier, vol. 32(17), pages 1935-1947, November.
    23. Bazilian, Morgan & Hobbs, Benjamin F. & Blyth, Will & MacGill, Iain & Howells, Mark, 2011. "Interactions between energy security and climate change: A focus on developing countries," Energy Policy, Elsevier, vol. 39(6), pages 3750-3756, June.
    24. Goyal, Mohit & Jha, Rakesh, 2009. "Introduction of Renewable Energy Certificate in the Indian scenario," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1395-1405, August.
    25. Dinica, Valentina, 2011. "Renewable electricity production costs--A framework to assist policy-makers' decisions on price support," Energy Policy, Elsevier, vol. 39(7), pages 4153-4167, July.
    26. Purohit, Pallav & Michaelowa, Axel, 2007. "CDM potential of bagasse cogeneration in India," Energy Policy, Elsevier, vol. 35(10), pages 4779-4798, October.
    27. Peter Newell & Jon Phillips & Pallav Purohit, 2011. "The Political Economy of Clean Development in India: CDM and Beyond," IDS Bulletin, Blackwell Publishing, vol. 42(3), pages 89-96, May.
    28. Purohit, Pallav, 2009. "CO2 emissions mitigation potential of solar home systems under clean development mechanism in India," Energy, Elsevier, vol. 34(8), pages 1014-1023.
    29. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198.
    30. Popp, David & Hascic, Ivan & Medhi, Neelakshi, 2011. "Technology and the diffusion of renewable energy," Energy Economics, Elsevier, vol. 33(4), pages 648-662, July.
    31. Pehnt, Martin, 2006. "Dynamic life cycle assessment (LCA) of renewable energy technologies," Renewable Energy, Elsevier, vol. 31(1), pages 55-71.
    32. Purohit, Pallav & Kandpal, Tara C., 2005. "Renewable energy technologies for irrigation water pumping in India: projected levels of dissemination, energy delivery and investment requirements using available diffusion models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 9(6), pages 592-607, December.
    33. Jiang, Bing & Sun, Zhenqing & Liu, Meiqin, 2010. "China's energy development strategy under the low-carbon economy," Energy, Elsevier, vol. 35(11), pages 4257-4264.
    34. Danthine, Jean-Pierre, 1978. "Information, futures prices, and stabilizing speculation," Journal of Economic Theory, Elsevier, vol. 17(1), pages 79-98, February.
    35. Sims, Ralph E. H. & Rogner, Hans-Holger & Gregory, Ken, 2003. "Carbon emission and mitigation cost comparisons between fossil fuel, nuclear and renewable energy resources for electricity generation," Energy Policy, Elsevier, vol. 31(13), pages 1315-1326, October.
    36. Singh, Anoop, 2009. "A market for renewable energy credits in the Indian power sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(3), pages 643-652, April.
    37. Verbruggen, Aviel & Fischedick, Manfred & Moomaw, William & Weir, Tony & Nadaï, Alain & Nilsson, Lars J. & Nyboer, John & Sathaye, Jayant, 2010. "Renewable energy costs, potentials, barriers: Conceptual issues," Energy Policy, Elsevier, vol. 38(2), pages 850-861, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shrestha, Anil & Kakinaka, Makoto, 2023. "Nexus between renewable energy certificates and electricity prices in India: Evidence from wavelet coherence analysis," Renewable Energy, Elsevier, vol. 204(C), pages 836-847.
    2. Kwag, Kyuhyeong & Shin, Hansol & Oh, Hyobin & Yun, Sangmin & Kim, Tae Hyun & Hwang, Pyeong-Ik & Kim, Wook, 2023. "Bilevel programming approach for the quantitative analysis of renewable portfolio standards considering the electricity market," Energy, Elsevier, vol. 263(PD).
    3. Indora, Sunil & Kandpal, Tara C., 2019. "A framework for analyzing impact of potential financial/fiscal incentives for promoting institutional solar cooking in India," Renewable Energy, Elsevier, vol. 143(C), pages 1531-1543.
    4. Sahoo, Sarat Kumar, 2016. "Renewable and sustainable energy reviews solar photovoltaic energy progress in India: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 927-939.
    5. Upma Singh & Mohammad Rizwan & Hasmat Malik & Fausto Pedro García Márquez, 2022. "Wind Energy Scenario, Success and Initiatives towards Renewable Energy in India—A Review," Energies, MDPI, vol. 15(6), pages 1-39, March.
    6. Zeki Ahmed Darwish & Hussein A. Kazem & K. Sopian & M. A. Alghoul & Hussain Alawadhi, 2018. "Experimental investigation of dust pollutants and the impact of environmental parameters on PV performance: an experimental study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 155-174, February.
    7. Xin-gang, Zhao & Lei, Xu & Ying, Zhou, 2022. "How to promote the effective implementation of China’s Renewable Portfolio Standards considering non-neutral technology?," Energy, Elsevier, vol. 238(PB).
    8. Charles Rajesh Kumar J & Vinod Kumar D & MA Majid, 2019. "Wind energy programme in India: Emerging energy alternatives for sustainable growth," Energy & Environment, , vol. 30(7), pages 1135-1189, November.
    9. Purohit, Ishan & Purohit, Pallav & Shekhar, Shashaank, 2013. "Evaluating the potential of concentrating solar power generation in Northwestern India," Energy Policy, Elsevier, vol. 62(C), pages 157-175.
    10. Amrutha, A.A. & Balachandra, P. & Mathirajan, M., 2017. "Role of targeted policies in mainstreaming renewable energy in a resource constrained electricity system: A case study of Karnataka electricity system in India," Energy Policy, Elsevier, vol. 106(C), pages 48-58.
    11. Irfan, Mohd, 2021. "Integration between electricity and renewable energy certificate (REC) markets: Factors influencing the solar and non-solar REC in India," Renewable Energy, Elsevier, vol. 179(C), pages 65-74.
    12. Darmani, Anna & Rickne, Annika & Hidalgo, Antonio & Arvidsson, Niklas, 2016. "When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 372-381.
    13. Purohit, Ishan & Purohit, Pallav, 2017. "Technical and economic potential of concentrating solar thermal power generation in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 648-667.
    14. He, Yongxiu & Pang, Yuexia & Zhang, Jixiang & Xia, Tian & Zhang, Ting, 2015. "Feed-in tariff mechanisms for large-scale wind power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 9-17.
    15. Jeslin Drusila Nesamalar, J. & Venkatesh, P. & Charles Raja, S., 2017. "The drive of renewable energy in Tamilnadu: Status, barriers and future prospect," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 115-124.
    16. Shrimali, Gireesh & Tirumalachetty, Sumala, 2013. "Renewable energy certificate markets in India—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 702-716.
    17. Lenka Štofová & Petra Szaryszová & Bohuslava Mihalčová, 2021. "Testing the Bioeconomic Options of Transitioning to Solid Recovered Fuel: A Case Study of a Thermal Power Plant in Slovakia," Energies, MDPI, vol. 14(6), pages 1-20, March.
    18. Olatomiwa, Lanre & Mekhilef, Saad & Ismail, M.S. & Moghavvemi, M., 2016. "Energy management strategies in hybrid renewable energy systems: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 821-835.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    2. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    3. Schallenberg-Rodriguez, Julieta, 2017. "Renewable electricity support systems: Are feed-in systems taking the lead?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1422-1439.
    4. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    5. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]," Post-Print hal-01585906, HAL.
    6. Reinhard Madlener & Weiyu Gao & Ilja Neustadt & Peter Zweifel, 2008. "Promoting renewable electricity generation in imperfect markets: price vs. quantity policies," SOI - Working Papers 0809, Socioeconomic Institute - University of Zurich.
    7. Youhyun Lee & Inseok Seo, 2019. "Sustainability of a Policy Instrument: Rethinking the Renewable Portfolio Standard in South Korea," Sustainability, MDPI, vol. 11(11), pages 1-19, May.
    8. Avri Eitan & Gillad Rosen & Lior Herman & Itay Fishhendler, 2020. "Renewable Energy Entrepreneurs: A Conceptual Framework," Energies, MDPI, vol. 13(10), pages 1-23, May.
    9. Bersalli, Germán & Menanteau, Philippe & El-Methni, Jonathan, 2020. "Renewable energy policy effectiveness: A panel data analysis across Europe and Latin America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    10. Shrimali, Gireesh & Tirumalachetty, Sumala, 2013. "Renewable energy certificate markets in India—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 702-716.
    11. Mario Ragwitz & Simone Steinhilber, 2014. "Effectiveness and efficiency of support schemes for electricity from renewable energy sources," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(2), pages 213-229, March.
    12. Sahoo, Sarat Kumar, 2016. "Renewable and sustainable energy reviews solar photovoltaic energy progress in India: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 927-939.
    13. Wüstenhagen, Rolf & Menichetti, Emanuela, 2012. "Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research," Energy Policy, Elsevier, vol. 40(C), pages 1-10.
    14. Darmani, Anna & Rickne, Annika & Hidalgo, Antonio & Arvidsson, Niklas, 2016. "When outcomes are the reflection of the analysis criteria: A review of the tradable green certificate assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 372-381.
    15. Fagiani, Riccardo & Hakvoort, Rudi, 2014. "The role of regulatory uncertainty in certificate markets: A case study of the Swedish/Norwegian market," Energy Policy, Elsevier, vol. 65(C), pages 608-618.
    16. Paul Lehmann & Patrik Söderholm, 2018. "Can Technology-Specific Deployment Policies Be Cost-Effective? The Case of Renewable Energy Support Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 475-505, October.
    17. Lüthi, Sonja & Wüstenhagen, Rolf, 2012. "The price of policy risk — Empirical insights from choice experiments with European photovoltaic project developers," Energy Economics, Elsevier, vol. 34(4), pages 1001-1011.
    18. Consolación Quintana-Rojo & Fernando E. Callejas-Albiñana & Miguel-Angel Tarancón & Pablo del Río, 2019. "Identifying the Drivers of Wind Capacity Additions: The Case of Spain. A Multiequational Approach," Energies, MDPI, vol. 12(10), pages 1-19, May.
    19. Moises Neil V Seriño, 2022. "Energy security through diversification of non-hydro renewable energy sources in developing countries," Energy & Environment, , vol. 33(3), pages 546-561, May.
    20. Verbruggen, Aviel & Lauber, Volkmar, 2012. "Assessing the performance of renewable electricity support instruments," Energy Policy, Elsevier, vol. 45(C), pages 635-644.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:22:y:2013:i:c:p:380-392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.