According to reports, the Supreme Court has stayed trading in Renewable Energy Certificates (RECs), whose prices have been reduced by the Central Electricity Regulatory Commission (CERC).
REC-generating companies had filed the petition in the court against the CERC action.
“While APTEL agreed to clear the stock by using the ‘Vintage Multiplier’ method it did not agree to put a stay on the REC trading. The Supreme Court has put a stay on the whole mechanism and trading. This would harm the sector more,” said a sector expert.
The Vintage Multiplier lets the REC generator sell more RECs for 1 unit of power. The REC market, launched in 2010, crashed last year with more than 10 million certificates going unsold, and has not made a significant improvement since then. The price discovered in the REC trading during April was Rs 1 a unit for both non-solar and solar RECs.
The Renewable Purchase Obligation, notified under the National Tariff Policy, makes it obligatory for distribution companies, open-access consumers and captive power producers to meet part of their energy needs through green energy.