CERC Directs NLDC to Issue Renewable Energy Certificates to Tadas Wind

The Central Electricity Regulatory Commission (CERC) has directed the National Load Despatch Centre (NLDC) to issue renewable energy certificates (RECs) to Tadas Wind Energy Private Limited (formerly known as Tadas Wind Energy Ltd) within a month.

The commission stated that the main objective of REC Regulations, 2010, is to promote the generation of renewable energy. The Tadas Wind projects generated power between January 1, 2016, and October 22, 2018, in Karnataka and from April 1, 2017, to October 23, 2018, in Andhra Pradesh. Taking this into consideration, the commission ordered the issuance of RECs.

According to the commission, for these two periods, the NLDC had stopped the issuance of RECs asking for fresh registration under REC mechanism on account of ‘change of legal status’ of Karnataka project and Andhra Pradesh project, which led to the loss of “green attributes of the power.”

Background



Tadas Wind Energy Private Limited owns and operates two wind generating projects. The two wind power projects of 100 MW and 50.4 MW in Karnataka and Andhra Pradesh, respectively, were commissioned in 2012.

The petitioner received accreditation and registration for both of its projects under the REC mechanism in its former name, Tadas Wind Energy Ltd. Subsequently, the company changed from public limited to a private limited company and its name changed from Tadas Wind Energy Limited to Tadas Wind Energy Private Limited on September 27, 2013.

Tadas Wind applied for the issuance of RECs under the ‘changed name’ to the authorities in Karnataka and Andhra Pradesh, but the applications were declined. The NLDC stopped issuing RECs for the Karnataka project from December 2016 and for the Andhra Pradesh project from April 2017, awaiting documentation as there was ‘change of legal status’.

Then, the petitioner applied for fresh accreditation and registration of its projects under its new name Tadas Wind Energy Private Limited.

Tadas Wind had entered into power purchase agreements (PPAs) with the distribution companies of Karnataka and Andhra Pradesh for the sale of power from the projects at an average power purchase cost (APPC) tariff.

The wind developer submitted that at the time of granting accreditation and registration under the REC mechanism for the first time, the petitioner had its former name, and therefore, the accreditation and registration under the REC mechanism was also in its former name.

The NLDC asked the company to apply for fresh accreditation and registration since it was a ‘change in legal status’ of the company.”

For the Karnataka project, the petitioner applied for fresh accreditation in October 2018 that was approved in January 2019. A fresh registration was applied with NLDC, which was granted in February 2019 for its Karnataka project. However, NLDC in March 2019, denied the RECs to the petitioner from the period from December 1, 2016, to October 22, 2018.

Similarly, for the Andhra Pradesh project, Tadas Wind had applied for fresh accreditation with the Transmission Corporation of Andhra Pradesh (APTRANSCO) in October 2018. However, APTRANSCO caused a significant amount of delay in granting re-accreditation or fresh accreditation, states the petition.

The NLDC stated that the issuance of RECs for the interim period could not be granted. It opposed the petition stating that it is nothing “but an abuse of the process of law”.

The commission, however, noted that Tadas Wind has complied with the REC Regulations, 2010, and REC registration procedures and obtained fresh accreditation for its two projects. It also got the two projects registered under the REC mechanism and subsequently applied to NLDC for the RECs for the interim period.

Stating this, the commission allowed the issuance of the RECs for the interim period to the petitioner.

In a similar order, Mercom reported that CERC issued an order directing the National Load Despatch Center to accept a procedural delay and allow the issue of 1,585 RECs to the Indian Tobacco Company Ltd.

Earlier this year, the CERC directed the NLDC and the Uttar Pradesh New and Renewable Energy Development Agency to issue RECs to Rana Sugars for a period from March 2016 to April 2017. The commission had observed that the RECs were denied on account of procedural and technical issues on which the respondent had no power or authority.

 

Image credit: Dicklyon [CC BY-SA]