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Wednesday, October 6, 2010

CERC amends REC norms: Premature termination of PPAs may disqualify generating companies

The Central Electricity Regulatory Commission (CERC) has modified the norms delineating the terms and conditions for recognition and issue of renewable energy certificates (REC), add ing certain other eligibility criteria to be met by the power generating companies. 

  • Accordingly, it has now been provided that in case of premature termination of any power purchase agreement (PPA), such an erring generation company shall not be eligible to participate in the REC scheme for a period of three years from the date of termination of such agreement or till the scheduled date of expiry of PPA , whichever is earlier, if found guilty of a material breach of contract by an appropriate adjudicating authority. 
  • Besides, the modified norms provide that a renewable energy-based captive power plant (CPP) shall be eligible to earn an REC for the entire energy generated from its plant, subject to the condition that such CPP has not availed or does not propose to avail any other benefit in the form of concessional, or promotional, transmission or wheeling charges, or waiver of electricity duty.
  • These regulations were originally notified by the Commission on January 14, 2010.

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