As a Relief to Renewable Generators in India, Central Energy Regulatory Commission has relaxed the expiration of RECs issued on and after 1.11.2011 for a period of 730 days from the date of issuance.
To take this Decision CERC, reviewed the trend of issuance and redemption of REC's over the past few Years. Currently the REC's far exceed the Demand. And as a consequence the REC's Lapsed after their validity of One Year and the main reason of lapsing of REC's is the reluctance or apathy on the part of distribution licensees to come forward and buy the REC's to meet their RPO Requirements.
Keeping in view the objective of promotion of energy through renewable sources, the Commission considered it necessary to extend the validity period of RECs in order to give opportunity and time to the RE generators to trade RECs at the Power Exchanges.
Accordingly the Commission proposed to grant relief to the affected RE Generators, whose RECs had lapsed with effect from 1.11.2012 or was likely to lapse in near future, after hearing the affected RE generators, NLDC and Power Exchanges, in exercise of the ‘power to relax’ under Regulation 15 of the REC Regulations.
15 stakeholders responded, including one Power Exchange. The Commission also heard the matter on 15.1.2013 in which Moser Baer and Simran Wind Projects Ltd made their submissions.
The following were the respondents who argued the REC Validity needs to be extended:
- IL&FS Wind Power Limited
- U.P. Sugar Mills Cogen Association
- Indian Wind Energy Association (InWEA)
- Indian Wind Turbine Manufacturers Association (IWTMA)
- Torrent Power Limited
- Wind Independent Power Producers Association (WIPPA)
- Mytrah Energy
- Power Exchange India Limited (PXIL)
- M& B Switchgears Limited
- Orient Green Power Company Limited (OGPL)
- Waaree Energies Pvt. Limited
- RE Connect Energy Solution Pvt
- Simran Wind Project Private Limited
- Orange Powergen Pvt. Limited
- Tamil Nadu Newsprint and Papers Limited
- Power System Operation Corporation Limited
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