The Green Energy Association has decided to appeal against the Appellate Tribunal of Electricity’s (APTEL’s) order on the floor and forbearance prices of renewable energy certificates (RECs). APTEL had recently dismissed petitions against the issue of new forbearance and floor prices for solar and non-solar RECs by the Central Electricity Regulatory Commission (CERC).
Reportedly, the Green Energy Association has called the order to be completely insensitive to renewable energy and has decided to move to the Supreme Court against the same. While CERC had issued a forbearance and floor price of Rs 2,500 per MWh and Rs 1,000 MWh for solar RECs respectively, it had set Rs 2,900 per MWh and Rs 1,000 per MWh, respectively as the forbearance and floor price for non-solar RECs.
According to media sources, the Green Energy Association feels that this reduction in the benchmark price of solar and non-solar RECs could adversely affect renewable energy project developers, particularly those who had set up these projects when investments as well as tariffs were much higher than the ones seen presently.
The association has also stated that APTEL’s decision could erode investor confidence as they could lose a significant amount of investments, thereby undoing the progress made towards the ease of setting up new renewable energy capacities.