(Reuters) - Renewable energy certificates (RECs) system creates market incentive for renewable power generation.

India has crafted rules for trading of certificates aimed at rewarding producers of clean energy, a move expected to boost the share of electricity from renewable sources in one of the world's top carbon polluters.

India's power regulator has laid out regulations on renewable energy certificates (RECs), which can be bought by companies to meet statutory obligations to purchase a minimum level of renewable energy, the government said in a statement.

"This concept seeks to address the mismatch between availability of renewable energy sources and the requirement of the obligated entities to meet their renewable purchase obligation," it said.

Renewable energy accounts for barely 8 percent of India's total capacity of about 150,000 megawatts but the government aims to double green power generation to 25,000 megawatts in four years.

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