CERC Extends Validity of RECs till October 31, 2020

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Power sector regulator CERC has ordered the extension of validity of Renewable Energy Certificates (RECs) till October 31, 2020.

The Central Electricity Regulatory Commission (CERC) in its order stated that the validity of RECs which expired or are likely to expire between April 01, 2020, and September 30, 2020, is extended up to October 31, 2020.

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RECs are a kind of market-based instrument i.e. 1 REC is created when 1 Mwh of electricity is generated from an eligible renewable energy source.

After reviewing the performance of REC market in terms of participation of buyers and sellers, volume cleared and the prices discovered, the Commission came to a conclusion that there is a need to extend the validity of RECs, so as to avoid demand-supply imbalance in the REC market.

As per the inventory data analyzed by the Commission, 1,30,500 RECs, including 34,768 for solar and 95,732 for non-solar, were issued prior to April 01, 2017, and expired as on April 01, 2020. Besides, 32,069 RECs which were issued after April 01, 2017, is also due to be expired within the next 6 months till September 30, 2020, including 674 RECs for solar and 31,395 for non-solar.

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According to the CERC order “in view of the above, the Commission in the exercise of power under Regulation 15 of REC Regulations extends the validity of RECs which have expired as on April 01, 2020, up to October 31, 2020. In addition, the validity of RECs which are likely to expire between April 01, 2020, and September 30, 2020, is also extended up to October 31, 2020.”

The order is in line with the Commission’s earlier December 2019, order in which it had extended the validity of RECs which had expired and were likely to expire between November 01, 2019, and March 31, 2020, up to March 31, 2020.