According to reports, in a move that aims to support the solar power developers in India, the Ministry of New and Renewable Energy (MNRE) is backing the renewable energy certificates (RECs) market. The ministry is optimistic of a positive change in the REC market despite its price higher than the actual purchase of solar power.
Newly appointed secretary of MNRE, Dr Upendra Tripathy, said at a gathering in New Delhi that his ministry was trying to work out a probability with the help of Central Electricity Regulatory Commission (CERC) and Forum of Regulators (FOR). He was speaking at the Solar Energy Summit at PHD Chambers in the national capital.
REC trading, which was introduced in March 2011 to boost the renmewable energy market mandates all the power distribution companies (Discoms) to buy certificates under the existing electricity act. However, the situation tells a different story, as there are hardly any state distribution companies that are meeting the REC targets. Tarun Kapoor, joint secretary at MNRE, said that the ministry has asked the power regulators to strictly comply with the fixed targets.
Kapoor informed that the MNRE has invited suggestions from various stakeholders for the new policy. It is believed that a comprehensive policy with regard to solar REC market will be formulated once the new government is formed at the Centre in mid May.