REC July 2013 Amendment brings only minor changes, a major disappointment for Renewable Energy Developers

Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) (Second Amendment) Regulations, 2013.

Click here for the notification

Click here for the Statement of Reason

Below the Gist of the notification explained by REConnect

  • Tariff for RE generator fixed under section 62/63 of the Act shall not entitle RE generator for RECs. 
    • Implications: RE Generators established with tariff fixed by Regulator either through competitive bidding or under cost-plus approach shall not entitle for RECs.
    • Also, RE generator selling power as a green power shall not be entitled for REC mechanism.
  • Applicability of E-Duty waiver is NO-LONGER an eligibility criteria for availing RECs for CGPs/CPPs. This means, CGPs availing E-Duty but not promotional wheeling and banking are eligible for RECs.
  • Co-Generation based on RE: Co-Gen plants based on RE resources if not falling under the criteria of CGPs, shall be eligible to get accredited for the SANCTIONED Load and shall be eligible to claim RECs for self-consumption.
  • Banking Facility: Definition of promotional banking remains UNCHANGED.
  • Issuance: Timeline for getting RECs issued has been extended for 6 MONTHs from the date of generation. Further, now you can apply for issuance on 10th, 20th and last day of every month.
  • Self-Redeemption of RECs for CGPs: CERC has permitted self-redeemption of RECs for CGPs availing RECs for their RE generating plant. However, self-redeemption has been restricted ONLY to the CGP and not the group companies.
  • Eligibility of RECs: RE generators are entitled to claim RECs from the next day of Registration or from the date of commissioning WHICHEVER is LATER. This does not provide much relief to RE generators who lose out precious time in getting registered.
  • Revocation of RECs: RE generators who have availed RECs by providing incorrect declaration / undertaking shall be going through following procedure:
    • RECs issued but not redeemed shall be REVOKED immediately by NLDC
    • RECs issuance and already traded; RE generator has to refund the money realized from sale of such RECs with an additional interest rate of 2% w.r.t PLR of SBI to Central Agency.

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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