What is RPO and REC?

One such support measure has been in the form of renewable purchase obligations (RPO) which require obligated entities such as discoms to purchase a minimum percentage of electricity from renewable energy (RE) sources. It is here that the concept of renewable energy certificates (RECs) assumes significance.

What is RPO in solar power?

What is Renewable Purchase Obligation (RPO)? Renewable Purchase Obligation (RPO) is a mechanism by which the State Electricity Regulatory Commissions oblige entities to purchase a certain percentage of power from renewable energy sources.

How does a solar auction work?

Essentially, an auction is held to such that developers of system-side renewable distributed generation projects bid the lowest prices they would be willing to accept to develop renewable energy projects. The projects are then scrutinized to ensure they meet the minimum project viability requirements.

What is the role of solar energy to life?

Almost all life on Earth relies on solar energy for food, either directly or indirectly. Producers rely directly on solar energy. They absorb sunlight and convert it into nutrients through a process called photosynthesis. Photosynthesis is also responsible for all of the fossil fuels on Earth.

How does a rec work?

Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC received can then be sold on the open market as an energy commodity.

What is REC scheme?

Renewable Energy Certificate (REC) mechanism is a market based instrument to promote renewable energy and facilitate compliance of renewable purchase obligations (RPO).

What are RPO targets?

Ans- Renewable Purchase Obligation (RPO) is the obligation mandated by the Maharashtra Electricity Regulatory Commission (MERC) under the Act, to purchase minimum level of renewable energy out of the total consumption by the Obligated Entity.

How does a renewable auction work?

Project developers who participate in the auction submit a bid with a price per unit of electricity at which they are able to realise the project. The government evaluates the offers on the basis of the price and other criteria and signs a power purchasing agreement with the successful bidder.

What is reverse auction Solar?

“The reverse auction procurement system in solar and wind was designed to award projects to the lowest bidder. What we have now is a reverse auction where opening bids are set and can only go in one direction – down,” said Raj Prabhu, CEO of Mercom Capital Group.

What is solar energy short answer?

The answer is simple: solar energy. Solar energy is simply the light and heat that come from the sun. Solar thermal technology, where heat from the sun is used to make hot water or steam. Passive solar heating, which can be as simple as letting the sun shine through windows to heat the inside of a building.

Why is solar energy important in South Africa?

Solar energy is one of the most readily accessible resources in South Africa, as the country’s solar-equipment industry is developing. This source of energy is a cleaner, and an often cheaper, variant of power that once deployed; provides South African institutions with an excellent opportunity to thrive.