Summary of second amendment to REC regulations

Posted on April 6, 2013 by

Central Electricity Regulatory Commission (CERC) suggested amendment in the existing REC regulations. The principal objective of the Amendment Regulations is to provide clarity on applicability of the regulations to eligible entities and bring in certain essential checks and balances in the REC related process.

The summary of the draft amendments is given below;

  1. Reverse bidding and PT projects defined as per Electricity Act, 2003
  2. In case of bagasse based co-generation plants, the connected load capacity as assessed/sanctioned by the concerned distribution licensee, shall be considered as the capacity for captive consumption for the purpose of issue of certificates, irrespective of the capacity of such plants covered under the power purchase agreement
  3. For APPC + REC model, PPA has to be signed at APPC. It should not be signed below APPC
  4. Electricity Duty will not be considered as a Concessional benefit
  5. IPP will have to forego the benefits applicable to CGP before availing RECs. Whether a benefit is applicable to CGP or IPP will be decided by the Appropriate Commission.
  6. The eligible entity shall apply to the Central Agency for certificates within six months from the corresponding generation from eligible renewable energy projects. Application for issuance of certificates may be made on 10th, 20th and last day of the month.
  7. A captive generating plant shall be permitted to retain the certificates for offsetting its renewable purchase obligation as a consumer subject to certification and verification by the concerned State Agency; Provided that the captive generating plant shall inform the Central Agency regarding the details of the certificates retained by it for meeting its renewable purchase obligations.
  8. REC validity extended to two years.

Final regulation with the above amendments will be published after the brief stakeholder’s consultation process.