CERC proposes new forbearance price and removal of floor prices for RECs

The Central Electricity Regulatory Commission (CERC) has issued a proposal for establishing forbearance and floor prices for renewable energy certificates (RECs). Market scenarios prevailing in different states, have been considered to determine the non-solar REC forbearance price and floor price. The average bid tariff discovered (during January 2017 and March 2020) has been considered to establish the solar REC forbearance price and floor price.The proposed forbearance price is Rs 1,000 each for solar and non-solar renewable energy certificates for 2020, against the 2017’s prices of Rs 2,400 and Rs 3,000 respectively.The commission has also proposed that the forbearance and floor prices will apply to RECs issued after April 1, 2017. For solar RECs issued before April 1, 2017, the eligible entities will have an option to adopt the proposed forbearance price and floor price or to continue as per the order issued in March 2017.

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