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5) What are Renewable Energy Certificates (RECs)?Discuss their need and significance. (250 words)

Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

5) What are Renewable Energy Certificates (RECs)?Discuss their need and significance. (250 words)


Why this question:

The question is in straightforward , based on the concept of REC’s and their importance. Recently Renewable Energy (RE) companies have moved the Delhi High Court, seeking an exemption for Renewable Energy Certificates (RECs) under the goods and services tax (GST).Thus it is important for us to ponder on the theme from exam point of view.

Key demand of the question:

The answer must discuss the concept of RECs , their benefits and significance in balancing energy scenario.


DiscussThis is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer


Introduce by defining REC’s – Renewable Energy Certificates (RECs) are a type of environmental commodity intended to provide an economic incentive for electricity generation from renewable energy sources. One REC is created when one megawatt hour of electricity is generated from an eligible renewable energy resource.


  • The answer is straight forward and explain concept and significance of REC’s.
  • Provide for introduction to Renewable Energy Certificate (REC) mechanism.
  • Discuss the potential of renewable energy in India.
  • Explain the issues currently facing REC’s in  India.

Conclusion –

Conclude with what should be done to overcome such issues.