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CERC Orders NLDC To Issue REC To Captive Solar Producer

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The Central Electricity Regulatory Commission (CERC) made a decision in favour of a captive solar power producer, Rajaram Maize Products Solar Division, which owns and runs a 4.8 MW captive solar project at Indawani village in Rajnandgaon, Chhattisgarh. It instructed the National Load Dispatch Centre (NLDC) to issue captive power providers renewable energy certificates (RECs).

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In November 2015, Chhattisgarh State Power Distribution Company Limited (CSPDCL) affixed a copy of the approved connection contract for the project’s grid interconnection.

In May 2016, the Chhattisgarh State Renewable Energy Development Agency (CREDA) granted REC to the company’s solar project from May 2016 to May 2021.

The firm said the project benefited from REC from June 2016 to March 2017.

On March 3, 2017, the State Commission issued an order granting the corporation captive status as well as banking facilities.

Following the ruling of the state Commission, NLDC ceased issuing RECs to the firm and their verification is still pending with the REC Registry of India. 

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NLDC argued that, according to the project status under the average pool power cost (APPC), NLDC issued RECs to the firm from June 2016 to March 2017. The corporation then transitioned from APPC to the captive route. 

As a result, it is important to emphasize that the project qualified for the REC in 2016 since it followed the APPC path and was not captive. If the firm wishes to move its status, its eligibility must be verified based on its present status and the current date that it is ineligible for RECs.

The captive generating project shall only be eligible for registration with the Central Agency under the REC programme if registered on or before June 30, 2016, said NLDC.

The firm said that their project was registered under the REC programme prior to June 30, 2016, and they are eligible to register with the Central Agency under the REC programme.

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Thus, the firm asked that the CERC direct NLDC to grant RECs for power generated in April 2017 and May 17, 2021.

According to the CERC, the project was registered via the REC process on June 29, 2016. In the absence of open access status, the firm was forced to sell power to CSPDCL via the APPC route in January and February 2016. 

However, NLDC refused the firm RECs since it was registered using the APPC route in 2016.

The central Commission determined that the firm should not be denied RECs as a result of the delay in recognizing the capital status of its project. According to the REC Regulations 2010, the firm is eligible for RECs for April 2017 and between November 2018 and May 2019.

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