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APTEL dismisses multiple appeals regarding reduced REC floor and forbearance price

<p>The previous forbearance price and the floor price for non-solar RECs determined by the CERC were Rs 3,300 per REC and Rs 1500 per REC respectively and for solar RECs - Rs 5800 and Rs 3500 respectively. As per the CERC order, the reduced floor price for non-solar REC&rsquo;s is Rs 1,000 and forbearance price is Rs 3,000.</p> <p>The tribunal has made it clear that the generation from renewable energy sources is required to be promoted to their fullest potential. The government has accordingly provided an enabling environment for the development of renewable energy sources to achieve the national commitment for achieving desired per cent generation from non-fossil fuels by 2030.</p> <p>CERC as a facilitator has brought out REC regulations from time to time stipulating the prices of REC that is floor and forbearance price. In earlier years of its regulations, CERC determined the REC prices based on its own benchmark capital cost but with the growing competition and induction of efficient and cheaper technology, it has now switched over to the method of specifying REC prices based on the prices discovered from bids and/or auctions.</p> <p>The earlier REC prices used to be higher owing to higher generic tariff and higher benchmark capital cost of renewable energy projects. Now, the bid discovered prices of renewable energy generation are lower because of higher competition. The various issues related to the renewable energy generation such as stranded REC inventory, recovery of cost, renewable purchase obligation (RPO) compliances, market realities, etc. have been duly analysed by CERC in the impugned order with the rationale thereof.</p>