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<p>The Supreme Court has extended the validity of solar and non-solar Renewable Energy Certificates (REC) that were due to expire between April 1, 2017, and March 31, 2018, up to March 31, 2018.</p>
<p>According to the Central Electricity Regulatory Commission (CERC), 3,52,814 solar RECs and 9,13,171 non-solar RECs are expected to expire by March 31, 2018.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2017/10/RECs-Due-to-Expire-Between-Oct-2017-and-Mar-2018.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-7850" src="https://mercomindia.com/wp-content/uploads/2017/10/RECs-Due-to-Expire-Between-Oct-2017-and-Mar-2018.png" alt="RECs Due to Expire Between Oct 2017 and Mar 2018" width="494" height="209" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/10/RECs-Due-to-Expire-Between-Oct-2017-and-Mar-2018.png 494w, https://cms.mercomindia.com/wp-content/uploads/2017/10/RECs-Due-to-Expire-Between-Oct-2017-and-Mar-2018-300x127.png 300w" sizes="(max-width: 494px) 100vw, 494px" /></a></p>
<p>The sale of RECs has been declining ever since CERC issued new forbearance and floor prices in <a href="https://mercomindia.com/cerc-reduces-forbearance-price-solar-recs-rs-2400-36-91mwh/" target="_blank" rel="noopener">March 2017</a>. The forbearance price for solar RECs was fixed at ₹2,400 (~$36.91)/MWh and the floor price was set at ₹1,000 (~$14.96)/MWh. The forbearance price for non-solar RECs was set at ₹3,000 (~$46.14)/MWh and the floor price at ₹1,000 (~$14.962)/MWh.</p>
<p>After the issuance of the new forbearance and floor prices for REC trading, many REC generators filed petitions citing losses due to the exclusion of a vintage multiplier in the new prices. The petitioners first approached the Appellate Tribunal of Electricity (APTEL) to suggest a way to clear the existing REC stock.</p>
<p>While the APTEL agreed to introduce a vintage multiplier, it refused to put a stay on the trading and that prompted the petitioners to approach the Supreme Court. Upon hearing the petition, the Supreme Court put a stay on both REC trading and the new prices introduced by CERC.</p>
<p>Later, in <a href="https://mercomindia.com/breaking-supreme-court-issues-order-allowing-wind-rec-trade/" target="_blank" rel="noopener">July 2017</a>, the Supreme Court of India issued an order that enabled the trading of non-solar RECs. With obligated entities required to pay the old REC rate of ₹1,500 (~$23.5)/REC, the total number of non-solar RECs sold in <a href="https://mercomindia.com/sale-non-solar-recs-decline/" target="_blank" rel="noopener">August 2017</a> was 2,89,505, a total that was 42 percent lower than the 4,95,295 non-solar RECs sold in July 2017.</p>
<p>Even now, the trade in solar RECs is still not happening because the Supreme Court has instituted a stay until further judiciary action takes place. This has led to a backlog of unsold RECs.</p>
<p>Image credit: Legaleagle86 at en.wikipedia [CC BY-<a href="https://creativecommons.org/licenses/by-sa/3.0" target="_blank" rel="noopener">SA 3.0</a> or <a href="http://www.gnu.org/copyleft/fdl.html" target="_blank" rel="noopener">GFDL</a>], via Wikimedia Commons</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
</div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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Supreme Court Extends the Validity of Solar and Non-Solar RECs to March 31, 2018

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