Explanation:

• It is a market-based instrument to promote renewable sources of energy and development of the market in electricity.
• It provides an alternative voluntary route to a generator to sell its electricity from renewable sources just like conventional electricity and offer the green attribute (RECs) separately to obligated entities to fulfil their RPO.
• One REC is created when one megawatt hour of electricity is generated from an eligible renewable energy source.
• It acts as a tracking mechanism for solar, wind, and other green energies as they flow into the power grid.It is traded on two power exchanges — Indian Energy Exchange (IEX) and Power Exchange of India (PXIL), in India.