Providing relief to renewable energy generators of both solar and non-solar projects who are a part of the renewable energy certificate (REC) mechanism, the Central Electricity Regulatory Commission (CERC) has issued an order extending the validity of RECs which were due to expire between April 1, 2019, and October 31, 2019.
The commission observed that 1,21,888 RECs which have been issued before April 1, 2017, are due to expire within the next six months. These include 8,307 solar RECs and 1,13,581 non-solar RECs.
The commission felt that there is a need to extend the validity of these RECs and therefore it has ordered that these will now remain valid up to December 31, 2019.
This important decision will provide the sellers with eight REC trading sessions to finish the entire inventory. This is a good move as buyers are showing more interest in purchasing RECs issued before April 1, 2017, as their price seems attractive, keeping in mind that all non-solar RECs have been trading at a price near ₹1,500 (~$21.15)/REC while all solar RECs have been trading around ₹2,000 (~$28.20)/REC.
Similar to this order, back in October 2018, the central commission had issued an order extending the validity of 183,999 RECs that were issued before April 1, 2017, and were due to expire between October 31, 2018, and March 31, 2019.
Earlier, the CERC had extended the validity of another set of RECs saying, “The commission in the exercise of Power under Regulation 15 of REC Regulations, extends the validity of RECs which have expired as on May 14, 2018, up to October 30, 2018. In addition, the validity of RECs which are likely to expire between May 15, 2018, and October 30, 2018, is also extended up to October 30, 2018.”
In October 2017, the Supreme Court had extended the validity of solar and non-solar RECs that were due to expire between April 1, 2017, and March 31, 2018, up to March 31, 2018.