SJVN has issued a letter of award to EKI Energy Services, a carbon credits developer and supplier, for registering, issuing, purchasing, and trading the International Renewable Energy Certificate (I-RECs) for the 1,500 MW Nathpa Jhakri Hydro Power Station.

The large-scale Nathpa Jhakri Hydroelectric Station is estimated to generate 5.75 million MWh annually and 5.75 million I-RECs. The net selling price after the deduction of all expenses is $0.20/IREC, and the revenue from the project is expected to be ₹100 million (~$1.2 million) per annum.

Additionally, EKI Energy Services has further stated that upon completing the formal process, 1,500 MW NJHPS was successfully registered in the I-REC registry mechanism from January 01, 2023, to December 31, 2027.

The I-REC, an International Renewable Energy Certificate, represents transferable proof that one MWh (1,000 units) of electricity was produced from renewable energy sources and added to an electrical grid. It is recognized by major reporting frameworks such as the Greenhouse Gas Protocol (GHGP) and Carbon Disclosure Project (CDP) and issued by the Standard Foundation, a non-profit.

I-RECs have become a reliable backbone for credible and auditable tracking instruments.

The certificates can originate from wind, solar, ocean energy, biomass, hydropower, landfill gas, aerothermal, geothermal, and landfill gas projects.

With the purchase of the I-REC, EKI Energy Services can now claim consumption of one MWh of renewable energy and significantly reduce carbon emissions.

The Central Electricity Regulatory Commission directed the Grid Controller of India to organize two Renewable Energy Certificate trading sessions every month – the second and last Wednesday of each month – for the upcoming six months, starting from October. The decision was made to help entities fulfill their renewable purchase obligations using RECs interchangeably.

In February 2022, the joint venture of Creduce Technologies and Hydel Construction won the bid from SJVN for a hydropower carbon credits project, which was estimated to create more than 80 million carbon credits and fetch ~$100 million in revenue for SJVN.