Recently the Central Electricity Regulatory Commission published an order, extending the expiry date of the RECs which were due to expire between November 2019 & March 2020. The commission had earlier via an order data 30.04.2019 following a petition no. 4/SM/2019 extended the validity of RECs getting expired in 1st April 2019 & 31st October 2019 up to 31st December 2019.
Currently, according to the inventory, there are 9,154 RECs (4,960 Solar and 4,554 Non-Solar) issued prior to 01.04.2017, which expired in the month of November 2019. Further, 2,16,849 RECs which were issued prior to 01.04.2017, are due to expire within the next four months. This includes 29,808 Solar RECs and 1,87,041 Non Solar RECs. The Commission is of the opinion that there is a need to extend the validity of these RECs.
Hence, the Commission has decided to extend the validity of RECs which have expired as on 30th November 2019 up to 31st March 2020. In addition, the validity of RECs which are likely to expire between 1st December 2019 and 31st March 2020 is also extended up to 31st March 2020.
According to the description, the RECs which have expired/are due to expire between 1st November 2019 and 31st March 2020 will remain valid up to 31st March 2020.
The announcement sure has brought some good news for the renewable energy generators at the very start of the new year. This advancement is also like to bring changes in the price discovery of future REC trade sessions since the non-solar vintage prices reached the forbearance price of INR 3,000/- in the December trade session.
Source: reconnectenergy
