After the Central Electricity Regulatory Commission’s (CERC) order dated 30th March 2017 on reduction of floor prices for RECs, many REC-generating companies had filed petitions stating that they had incurred a loss as vintage multiplier was not provided. The approach proposed for vintage multiplier considers providing multiplier to Solar PV projects by analyzing the difference between the minimum project viability requirement and change in Average Power Pool Cost (APPC) from the year of project commissioning to the current year.

When the petition was taken to the Supreme Court, it not only put a stay on the trading, but has also stayed the new price regime which was introduced by the CERC. The earlier floor price was Rs 1500/REC and the present Floor Price, Rs 1000/REC to be held by CERC during the pendency of the matter with Appellate Tribunal.

For the matter of CERC’s order on new RECs pricing and the petition against it by the REC-generating companies, a hearing was held in Supreme Court on 14th July 2017. Main highlights of the Order are as follows:

• The Supreme Court allowed the appeal only for Non solar RECs
• Non Solar RECs can be traded.
• The trading price of the Non Solar RECs is to be taken at previous price i.e. Rs 1500/REC with the additional amount i.e. Rs 500/REC (Between the earlier floor price i.e. Rs 1500/REC and the present Floor Price i.e. Rs 1000/REC) to be deposited with the CERC.
• Price of Solar RECs is yet not decided as on 17-07-17 was the hearing date but it has been postponed to a later date.

However it will take some time before trading can start as CERC will have to develop modalities to accept such a deposit.