The Ministry of Power (MoP) has approved the amendments in the existing renewable energy certificate (REC) mechanism.
Accordingly, floor and forbearance price limits will be removed and REC prices will be determined by market conditions. The changes proposed in revamped REC mechanism will be implemented by the Central Electricity Regulatory Commission through regulatory process. MoP had circulated a Discussion paper on redesigning the REC Mechanism for comments of stakeholders in power sector on June 4, 2021. The intent behind this decision is to align the mechanism with the emerging changes in the power scenario and also to promote new renewable technologies. The proposed changes will provide some flexibility to the players, additional avenues, rationalization and also addressing the RECs validity period uncertainty issues.