APTEL upholds low prices of Renewable Energy Certificates

The Renewable Energy Certificates (RECs) market which has been battling low demand will now be traded at record low prices. Upholding the earlier order of the Central Electricity Regulatory Commission (CERC), the Appellate Tribunal of Electricity (APTEL) has allowed the new price regime. This is expected to hurt the REC suppliers as low prices will leave no room for profit. 

The CERC order last year had set the floor price of Solar REC to Rs 1/unit and forbearance price to Rs 2.5/unit. It was earlier Rs 3.5/unit and Rs 5.8/unit, respectively. Whereas for the non-solar (wind power and others), the floor