APTEL sets aside CERC’s order regarding forbearance and floor prices for solar and non-solar RECs

The Appellate Tribunal for Electricity (APTEL) has set aside order dated June 17, 2020 by the Central Electricity Regulatory Commission (CERC) wherein CERC had revised the floor and forbearance price of solar and non-solar renewable energy certificates (RECs) toRs 0 per MWh and Rs 1,000 per MWh respectively.

The tribunal held that CERC had wrongly relied upon the declining tariff trend in competitive bids assuming that such phenomena could only be due to a reduction in generation cost. It also held that to expect the RECs to be traded, sold, or purchased at zero value when the impugned order applied retrospectively to the RECs issued on or after April 1, 2017, does not serve any purpose. The tribunal directed that the RECs which were still valid for trading at the power exchange under REC Regulations as on the date (June 17, 2020) the impugned order was passed, and have remained unsold till date, will continue to be valid and be good for sale or purchase for the then remainder period of their validity. It also directed CERC to issue formal orders to this effect and give the same due publicity for information of all stakeholders within two weeks hereof.

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