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The concept of 'Renewable Energy Certificates (RECs)' is a mechanism primarily intended to:

AProvide a direct subsidy for the installation of renewable energy systems.

BRegulate the pricing of renewable energy in the market.

CGuarantee a minimum purchase price for all renewable energy produced.

DPromote renewable energy generation and help Obligated Entities meet their RPOs.

Answer:

D. Promote renewable energy generation and help Obligated Entities meet their RPOs.

Read Explanation:

  • Promote renewable energy generation and help Obligated Entities meet their RPOs. Explanation: RECs are market-based instruments that allow power producers to sell the 'green' attribute of their power separately from the physical electricity.

  • This helps obligated entities (like DISCOMs) meet their Renewable Purchase Obligations (RPOs) by buying the certificates instead of the power itself.

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