SUPREME COURT ISSUES ORDER ALLOWING WIND REC TRADING

The Supreme Court of India has issued an order allowing the trade in Wind Renewable Energy Certificates (RECs). The highest court in India has removed the stay placed on the Appellate Tribunal’s order.

In this case, appellant is INDIAN WIND POWER ASSOCIATION (NRC) and respondent is Central Electricity Regulation Commission. Mr.Dhruv Mehta, learned Senior Counsel, appearing on behalf of the applicant has itself sought for an alternative prayer that any obligated entity purchasing RECs at the floor price determined vide the order dated 30.03.2017 shall deposit the difference between the earlier floor price and the present Floor Price with the Respondent No.1, Central Commission during the pendency of the Appeal No. 105 of 2017 before the Appellate Tribunal.

The Central Electricity Regulatory Commission (CERC) issued new forbearance and floor prices for Renewable Energy Certificates (REC) on April 1, 2017. The forbearance price for non-solar RECs is Rs.3000 (~$46.14)/MWh and the floor price is Rs.1000 (~$14.962)/MWh.

After the issuance of new forbearance and floor prices for REC trading, many REC generators filed petitions with quotation of losses due to exclusion of vintage multiplier in the new prices. The petitioners first approached the Appellate Tribunal of Electricity (APTEL) to suggest a way to clear the existing REC stock.

APTEL agreed to introduce a vintage multiplier, it refused to put a stay order on the trading for REC, which led the petitioners to approach the Supreme Court. Upon hearing the petition, the Supreme Court put a stay order on REC trading and the new prices which is introduced by the CERC.

On May 26, 2017, the Indian Energy Exchange issued a letter announcing the official suspension of REC trading. After much deliberation, the Supreme Court has asked the respondents to ensure that any obligated entity purchasing RECs at the new floor price determined by CERC must deposit the difference between the earlier floor price and the present floor price.

As per final judgement, prayer/proposal of applicant in appellate was accepted and the case was disposed.

Reference:-

THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 6083 OF 2017 WITH I.A. NOS. 42490 AND 42496 OF 2017

INDIAN WIND POWER ASSOCIATION (NRC) Appellant(s)

VERSUS

CENTRAL ELECTRICITY REGULATORY COMMISSION & ANR. Respondent(s)

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