MUMBAI (Dow Jones) - India’s federal electricity regulator Monday announced a policy for regulating tradable energy instruments–called renewable energy certificates–to help boost power generation from water, wind and other such clean energy sources in the country.

The policy will create a national level market for buying and selling such certificates, the Central Electricity Regulatory Commission said in a statement.
A utility or power producer that exceeds its renewable energy targets will be able to sell surplus certificates to utilities that fail to meet their goals. The targets are fixed by state-level regulators.

Under the policy, a federal level agency will be created for issuing certificates to renewable energy generators, it said.

The value of a certificate will be equivalent to one megawatt of electricity injected into the grid from renewable sources.

These certificates can be traded only in the power exchanges approved by the regulator and within a price range determined by it from time to time, the commission said.

By Eric Yep, Dow Jones Newswires; 91-22-6145-6110; eric.yep@dowjones.com