According to a recent office memorandum by MNRE, the IWPA has suggested making a few amendments to the CERC REC Regulations (Third amendment) dated 30th December 2014. The amendment talks about the eligibility norms for the DISCOMs that have significantly achieved RPO (as per the regulation)
As per the IWPA’s suggestion, a RE multiplier can be provided, which means,
- For over-achievement between of RPO from 1% to 2% – 2 RECs to be granted for each MWh of RE procured,
- 3 RECs for each MWh RE purchased for the achievement of 3% to 4% and;
- Lastly, 4 RECs for MWh RE purchased for an over-achievement between 4% to 5% & so on.
The Wind Association insisted that the graded incentive will prove to be a balance in the ever-increasing cost with high penetration of RE into the grid.
The Centre Electricity Regulatory Commission in their third amendment (REC regulations) had introduced a vintage multiplier eligible to all the solar generating companies registered under REC framework prior 1 st January 2015 and till 31st March 2017 and amended the regulations to included eligibility criteria for Discoms under REC mechanism for over-achievement of RPO.
CERC was in sync with the suggestion and felt that the DISCOMs need some encouragement for procuring renewable power beyond Renewable Purchase Obligation and the proposed multiplier would help in reducing the financial burden of DISCOMs as they integrate higher share of renewable energy.
However, as per CERC, the step-up REC multiplier that keeps increasing for every 1% RPO over achievement is on the higher side.
Hence, CERC has been requested by Ministry of Power through its office memorandum to revise the third amendment to the REC regulations (December 2014) and make the discoms eligible for 2 RECs for each MWh renewable power procured after achieving the 2% more than the RPO of the corresponding year.