Petition of the CERC (Conduct of Business) and (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations for issuance of Renewable Energy Certificates – EQ

Summary:

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## ⚖️ Procedural History of the Petition

| Date | Event |
|——|——-|
| 28.05.2021 | First hearing – Petition admitted; NLDC directed to file reply |
| 21.06.2021 | NLDC filed reply |
| 10.05.2023 | **Petition dismissed for non-prosecution** (Petitioner/counsel absent despite notice) |
| 11.09.2023 | RPPL filed IA No. 65/IA/2023 seeking recall of dismissal order |
| 27.02.2025 | CERC directed NLDC to file reply on IA maintainability |
| 22.05.2025 | CERC noted delay in filing IA; imposed **cost of ₹20,000** on RPPL; restored original petition |
| 16.09.2025 | RPPL permitted to file rejoinder |
| 25.11.2025 | Final opportunity given to file rejoinder |
| 18.12.2025 | RPPL filed rejoinder |
| 15.01.2026 | Matter reserved for order after written submissions |
| **10.04.2026** | **Final order passed** |

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## 📜 Key Legal Provisions Referenced

| Regulation | Provision |
|————|———–|
| **REC Regulations, 2010, Reg 5(1)(c)** | Eligibility for RECs if electricity sold to DISCOM at ≤pooled cost, OR to licensee/open access at mutually agreed price, OR **through power exchange at market price** |
| **REC Regulations, 2022, Reg 4(2)(a)** | Eligibility if tariff not determined/adopted under Section 62/63, OR electricity **not sold** directly/through trader/power exchange for RPO compliance |
| **REC Regulations, 2010, Reg 14** | Power to give directions |
| **REC Regulations, 2010, Reg 15** | Power to relax |
| **REC Regulations, 2022, Reg 18** | Power to relax |
| **REC Regulations, 2022, Reg 19(2)** | Saving clause – actions under repealed 2010 regulations deemed valid under 2022 regulations |

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## ✅ CERC’s Final Decision

### Issue 1: RECs for power sold through Power Exchange (15.07.2013–19.07.2013)

**Decision:** ✅ **In favour of Petitioner**

**Reasoning:**
– Regulation 5(1)(c) of REC Regulations, 2010 **expressly permits** sale through power exchange as a valid mode for REC eligibility
– REC Regulations, 2022 also recognise power exchange sales (with condition that green attributes not claimed separately)
– NLDC’s refusal was incorrect

**Direction to NLDC:**
– Issue RECs for the period **15.07.2013 to 19.07.2013** based on EIR submitted by APTRANSCO
– Subject to verification that sale was **not made through GDAM or GTAM** segments of power exchange (where green attributes might be separately claimed)

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## 💼 Business Points – Key Takeaways for RE Generators

| Business Aspect | Implication |
|—————-|————-|
| **Power exchange sales are REC-eligible** | Selling renewable energy through IEX or other power exchanges **does not disqualify** a generator from receiving RECs (subject to not double-claiming green attributes via GDAM/GTAM). |
| **REC value ≠ floor price** | RECs are issued based on **energy injected (MWh)** , not on the floor price. Floor price only sets minimum trading price in the market. |
| **Retrospective RECs get current floor price** | If RECs are issued years after generation (e.g., due to accreditation delays), the floor price applicable on **issuance date** (not generation date) will apply. |
| **Delays in filing can be costly** | RPPL had to pay **₹20,000 cost** for delayed recall application. Timely legal follow-up is critical. |
| **Power to relax** | CERC can exercise “Power to Relax” under REC Regulations to remove hardship – but only on merits, not for all claims. |
| **Verification requirement** | Even when eligible, NLDC will verify EIRs and ensure no double-counting of green attributes (e.g., via GDAM/GTAM). |

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## ⚠️ Practical Takeaways for RE Generators

1. **Keep EIRs properly documented** – they are the basis for REC issuance.
2. **Power exchange sales are fine** – but ensure green attributes are not separately claimed (avoid GDAM/GTAM if seeking RECs).
3. **Don’t assume floor price applies to REC issuance** – it only applies to trading.
4. **Act promptly in legal proceedings** – delays can lead to dismissal and cost penalties.
5. **Check if your project falls under Section 62/63 tariff determination** – if yes, REC eligibility may be affected under new 2022 regulations.

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