Petition No. 99/2010. Case: In Re: Determination of Forbearance and Floor Price for the REC framework Vs. Central Electricity Regulatory Commission
| Case Number | Petition No. 99/2010 |
| Judges | Pramod Deo, Chairperson, M. Deena Dayalan, V.S. Verma and S. Jayaraman, Members |
| Issue | Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 - Regulations 5(2), 7(6), 9, 9(1) and 9(2); Central Electricity Regulatory Commission RE Tariff Regulations, 2009 |
| Judgement Date | June 01, 2010 |
| Court | Central Electricity Regulatory Commission |
Order:
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BACKGROUND
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In exercise of the power under Section 66 and 178 of the Act, the Commission has notified the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 (hereafter REC Regulations).
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As per the first proviso to Clause (1) of Regulation 9 of the REC Regulations, the Commission in consultation with the Central Agency and Forum of Regulators shall provide for the Forbearance and Floor Price separately for solar and Non-solar Renewable Energy Certificates.
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Further, Clause (2) of Regulation 9 of the REC Regulations provides for the guiding principles for determining the forbearance and floor price for solar and non- solar Certificates. The relevant provisions are extracted as under:
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Pricing of Certificate:
(1) The price of Certificate shall be as discovered in the Power Exchange:
Provided that the Commission may, in consultation with the Central Agency and Forum of Regulators from time to time provide for the floor price and forbearance price separately for solar and non-solar Certificates.
(2) The Commission while determining the floor price and forbearance price shall be guided inter alia by the following principles:
(a) Variation in cost of generation of different renewable energy technologies falling under solar and non-solar category, across States in the country:
(b) Variation in the Pooled Cost of Purchase across States in the country;
(c) Expected electricity generation from renewable energy sources including:
i. expected renewable energy capacity under preferential tariff
ii. expected renewable energy capacity under mechanism of certificates;
(d) Renewable Purchase obligation targets set by State Commissions.
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In pursuance of the powers vested under proviso to the Regulation 9(1) of REC Regulations, the Commission has consulted the Forum of Regulators (FOR) vide letter number 1/3/2009 Reg. Affairs (RE Tariff-FY-1010-11)(ii)/CERC dated 29th March, 2010 and the Central Agency before finalising the forbearance and floor price for the REC.
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The Commission vide its Suo Motu Petition No. 99/2010 issued an order dated 23rd March, 2010 for 'determination of Forbearance and Floor Price for the REC framework' and invited comments from the various stakeholders.
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A public hearing was held on 27 April, 2010. A number of stakeholders submitted their comments/suggestions in response to the order dated 23rd March, 2010 proposing Forbearance & Floor prices for REC. Summary of the comments/suggestions is attached at Appendix -- A to this order.
Consideration of the views of the stakeholders & analysis and findings of the Commission on...
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