REC benefits - Opportunities for SHP developers

A small-hydro power (SHP) developer can either sell power directly to the state utilities at feed-in-tariffs determined by the state or indirectly through renewable energy certificate (REC) trading. In the latter case, the power generated is sold to the state discom at the average power purchase cost (APPC) or used for captive consumption and/or third party sale at marked-based prices.