The Supreme Court of India has issued an order enabling the trade of non-solar Renewable Energy Certificates (RECs) on the appeal of Indian Wind Power Association (IWPA).
The non-solar RECs encompass around 1,200 projects throughout India with a total capacity of 5,383 MW. In April 2017, the Central Electricity Regulatory Commission (CERC) of India reduced the floor price of RECs to attract buyers and reduce inventories of unsold credits. The floor prices were cut from Rs 3,500 (US$52) to Rs 1,000 (US$15) for solar RECs and from Rs 1,500 (US$22) to Rs 1,000 (US$15) for non-solar RECs (wind and others). Later on, the CERC order was challenged by RECs generating companies which lodged a complaint in the Appellate Tribunal of Electricity (APTEL). In the wake of the new order, the difference in the old and new price during the trading will now be deposited with the regulators until the matter is pending.
RECs were introduced in 2010 but the system failed to attract renewable producers, since purchase obligations were not strictly enforced (no penalties levied on those failing to meet targets). India had to reduce REC prices twice to attract buyers.
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