The Central Electricity Regulatory Commission(CERC) has extended the validity of Renewable Energy Certificates(REC) to 730 days. The commission issued these guidelines after hearing the petitions from stakeholders including wind developers and solar developers.
The idea behind this extension wasto uphold the main objective of RECs and to give opportunity and time to the RE generators to trade RECs at the Power Exchanges. Accordingly the Commission proposed to grant relief to the affected RE Generators, whose RECs had lapsed with effect from 1.11.2012 or was likely to lapse in near future.
From the submissions from various stakeholders, it emergeed that there is a consensus in favour of extending the period of validity of the RECs, though theduration of the period varies from one year to five years or till the RECs are extinguished after trading.
Some other suggestions included introduction and implementation of enforcement mechanism for RECs and introduction of a national level body known as Market Maker or REC Price Guarantor to act as the buyer of last resort and seller of last resort.
The success of the renewable energy capacity addition programme in general and REC mechanism in particular are largely dependent on enforcement of Renewable Purchase Obligation (RPO). CERC does not have the jurisdiction to enforce the RPO on the obligated entities in the States. This responsibility of setting RPO targets and implementation thereof rests with the State Electricity Regulatory Commissions (SERCs). Therefore, SERCs would have to strictly monitor RPO compliance made by the obligated entities and enforce compliance as per their REC Regulations in order to make the REC programme successful.