Petition of the CERC (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations – EQ

Summary:

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## Key Business Points

### 1. **What PCKL is Seeking**

– **Relaxation** of the prescribed time period for submitting REC applications for the **financial year 2023-24**
– A direction to the **Central Agency (Grid Controller of India)** to accept REC applications from:
– **HESCOM** (Hubli Electricity Supply Company Limited)
– **GSCOM** (Gulbarga Electricity Supply Company Limited)
– These are **distribution licensees in Karnataka** – likely acting as **obligated entities** under the Renewable Purchase Obligation (RPO) framework

### 2. **Legal Context – REC Regulations 2022**

| Regulation | Provision |
|————|———–|
| **Regulation 10** | Prescribes the procedure and timeline for REC application submission |
| **Regulation 18** | Provides CERC with the power to relax timelines or address difficulties in implementation |

> PCKL is invoking Regulation 18 to seek **relaxation of the prescribed timeline** for FY 2023-24 REC applications.

### 3. **Why This Matters**

| Aspect | Implication |
|——–|————-|
| **REC issuance** | If the application is not accepted, HESCOM and GSCOM may not receive RECs for their eligible renewable energy generation in FY 2023-24 |
| **RPO compliance** | RECs are used by obligated entities (DISCOMs, open access consumers, captive users) to meet their Renewable Purchase Obligations |
| **Market liquidity** | Delayed or denied REC issuance affects supply in the REC market (both solar and non-solar RECs) |
| **Carrying cost** | RECs have a validity period; delayed issuance may reduce their utility |

### 4. **Status of Proceedings (as of 17th April 2026)**

| Direction | Timeline |
|———–|———-|
| Petition **admitted** | – |
| Notice issued to Respondent (Grid Controller of India) | – |
| Respondent to file reply | Within **4 weeks** (by ~15th May 2026) |
| PCKL to file rejoinder | Within 3 weeks after reply (by ~5th June 2026) |
| **Next hearing** | **7th July 2026** |

### 5. **Stakeholder Impact**

| Stakeholder | How Affected |
|————-|—————|
| **HESCOM & GSCOM** | Directly seeking REC issuance; outcome affects their RPO compliance |
| **Other DISCOMs** | Precedent on timeline relaxation may apply to them |
| **Open access consumers** | Need RECs to meet RPO; supply may be affected |
| **Captive power producers** | Similarly rely on REC market for compliance |
| **REC traders / market participants** | Supply volume and pricing in REC market may be impacted |
| **Renewable energy generators** | REC issuance to DISCOMs affects overall REC demand and price |

### 6. **Strategic Recommendations for Businesses**

| Action | Why |
|——–|—–|
| **Monitor the case** | Outcome may affect REC market supply and pricing in 2026-27 |
| **Check your own REC applications** | Ensure timely submission to avoid similar issues |
| **Review Regulation 18** | Understand CERC’s power to relax timelines – could be useful for future delays |
| **Engage with Central Agency** | Clarify application deadlines and grace periods for FY 2024-25 |

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## Background: REC Mechanism in India

| Element | Description |
|———|————-|
| **Obligated Entities** | DISCOMs, open access consumers, captive users – must buy a % of power from renewable sources |
| **REC** | Tradable certificate proving 1 MWh of renewable energy generated |
| **Central Agency** | Grid Controller of India (formerly NLDC) – issues RECs |
| **REC Market** | Solar and Non-Solar RECs traded on power exchanges (IEX, PXIL) |
| **Validity** | RECs valid for 365 days from date of issuance |
| **Regulation** | CERC REC Regulations, 2022 |

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