The National Action Plan on Climate Change (NAPCC) has opened up new vistas for Renewable Energy Certificate (REC) trading in India. Internationally, RECs are essentially used as a facilitating mechanism for meeting the Renewable Purchase Obligation (RPO) in the compliance market under a supportive policy and regulatory regime.

After an exhaustive consultative process initiated in July 2008, the Tamil Nadu Electricity Regulatory Commission (TNERC) on 20 March 2009, announced a comprehensive order on wind energy tariff to be applicable from 19 September 2008.