Breaking: Supreme Court Issues Order Allowing Wind REC Trade
The Supreme Court of India has issued an order allowing the trade in Wind Renewable Energy Certificates (RECs). The highest court in India has removed the stay placed on the Appellate Tribunal’s order.
According to a release, “The Court felt that there should be no problem if Wind RECs were to be traded at the figures given previously.”
Mercom previously reported that the Central Electricity Regulatory Commission (CERC) issued new forbearance and floor prices for REC (solar, Non-solar).
After the issuance of new forbearance and floor prices for REC trading, many REC generators filed petitions citing losses due to exclusion of 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.
While the APTEL agreed to introduce a vintage multiplier, it refused to put a stay on the trading, which led the petitioners to approach the Supreme Court. Upon hearing the petition, the Supreme Court put a stay on REC trading and the new prices introduced by the CERC.
On May 26, 2017, the Indian Energy Exchange issued a letter announcing the official suspension of REC trading. After much deliberation, the Supreme Court has asked the respondents to ensure that any obligated entity purchasing RECs at the new floor price determined by CERC must deposit the difference between the earlier floor price and the present floor price.
It is a welcome news for all stakeholders involved. However, the stay on solar REC trading remains in place, and the hearing on that matter will be held in due course.