SC allows trading of Renewable Energy Certificates

The Supreme Court on Tuesday allowed trading of renewable energy certificates (RECs) on the appeal of Indian Wind Power Association (IWPA). However, the order is restricted to non-solar RECs and would have to comply with the earlier prices. In March 2017, Central Electricity Regulatory Commission (CERC) reduced REC prices to a historic low. The floor price of solar REC was reduced to Rs 1/unit and forbearance at Rs 2.5/unit. It was earlier Rs 3.5/unit and Rs 5.8/unit, respectively. For non-solar (wind and others), the floor price was reduced to Rs 1/unit and forbearance at Rs 2.9/unit. It was earlier in the range of Rs 1.5-3.5/unit. The order was challenged by REC generating companies in the apex court and in the Appellate Tribunal of Electricity (APTEL). The petitioners had submitted that lowering the prices would never clear the unsold stock of close to 10 million RECs. The generators asked the APTEL to suggest ways to clear the existing stock of RECs, which would be hampered by the new price regime. Financial Astrology Tips