New Delhi: Power exchanges IEX and PXIL have made a case for reopening the buying and selling of renewable vitality certificates (REC), saying the market closure is impacting the whole worth chain within the electrical energy market.
The Indian Power Change (IEX) and Energy Change India (PXIL) are of the view that points associated to fixing flooring and forbearance costs of REC by the Central Electrical energy Regulatory Fee (CERC) could be settled within the Appellate Tribunal for Electrical energy (APTEL).
Final month, APTEL had postponed the buying and selling of REC scheduled on July 29 by 4 weeks until August 26, after listening to three separate appeals filed by the Inexperienced Power Affiliation, the Indian Wind Energy Affiliation and Techno Electrical and Engineering Firm Ltd towards the CERC order issued on fixing REC flooring and forbearance costs.
REC buying and selling was not accomplished on August 26 consequently.
Within the order issued on August 26 after listening to the three appeals once more, APTEL mentioned, “Interim order, if any, shall proceed until the subsequent date of listening to… Checklist the matter for listening to on September four and 5.”
Thus, REC buying and selling can’t be scheduled until September four and 5 because the interim order issued on July 24 for holding the REC market closed remains to be enforced.
Speaking to , IEX Company Communication Head Shruti Bhatia mentioned, “The REC market shouldn’t be closed. The accounts of consumers and sellers could be settled retrospectively primarily based on the orders of APTEL because the matter is sub judice.”
Echoing comparable views, a prime PXIL official advised , “The market should stay open as closing would impression the whole worth chain. There’s a priority that REC market remained open whereas the difficulty was settled at completely different authorized fora.”
In accordance with a CERC order in June, the ground worth of photovoltaic and non-solar RECs has been decreased to zero from Rs 1,000 earlier.
Equally, the forbearance (ceiling) worth of photovoltaic and non-solar was decreased to Rs 1,000 for each from Rs 2,400 and Rs 3,000, respectively.
The forbearance worth and flooring worth fastened by the CERC are efficient from July 1, 2020 to June 30, 2021 or till additional orders of the Fee.
In June, the Supreme Court docket had refused to entertain Inexperienced Power Affiliation’s (GEA) enchantment on stopping REC worth revision by the CERC.
Business specialists are of the view that increased REC costs put extra burden on customers in energy tariff.
REC buying and selling is finished on two exchanges IEX and PXIL on final Wednesday of each month.
Underneath the renewable buy obligation (RPO), bulk purchasers like discoms, open entry customers and capacitive customers are required to purchase a sure proportion of RECs. They’ll purchase RECs from renewable vitality producers to satisfy the RPO norms.
One REC is created when one megawatt hour of electrical energy is generated from an eligible renewable vitality supply.
Gross sales of renewable vitality certificates declined over 29 per cent to 89.27 lakh items in 2019-20, in comparison with 1.26 crore items in 2018-19.
[source: universalpersonality.com, 30/08/2020]