The Central Electricity Regulatory Commission (CERC) has resolved a major dispute involving the issuance of Renewable Energy Certificates (RECs) between India Power Corporation Limited (IPCL) and the National Load Despatch Centre (NLDC). In its order dated May 24, 2026, under Petition No. 841/MP/2025, the Commission ruled in favor of IPCL and directed the NLDC to restore the remaining 1,19,293 RECs that had earlier been denied.
IPCL, a licensed electricity distribution company operating in the Asansol-Raniganj region of West Bengal, had approached the Commission after receiving fewer RECs than it claimed for the financial year 2024-25. Under the Renewable Purchase Obligation (RPO) framework set by the West Bengal Electricity Regulatory Commission (WBERC), the utility was required to meet a total renewable energy target of 17%, including 6% from solar sources and 11% from non-solar sources.
During FY 2024-25, IPCL exceeded its prescribed renewable purchase target by procuring an additional 440.119 million units of renewable energy. Based on this surplus, the state regulator certified the excess procurement and approved the utility’s eligibility for 4,40,119 Renewable Energy Certificates.
However, while processing the application on the national REC portal, the NLDC reduced the total number of certificates to 3,20,826. The central agency recalculated the eligible surplus by applying a higher Renewable Energy Consumption Obligation (RCO) benchmark of 29.91%, which had been notified by the Ministry of Power under the Energy Conservation Act. This resulted in a shortfall of 1,19,293 certificates compared to the quantity approved by the state regulator.
IPCL accepted the lower issuance under protest and filed a petition before the CERC seeking restoration of the remaining certificates. During the hearing, the company argued that the REC framework is governed by regulations framed by electricity regulators and not by executive instructions issued by ministries. The petitioner also pointed out that the CERC REC Regulations, 2022 clearly state that REC eligibility for distribution companies should be calculated on the basis of surplus renewable procurement over and above the RPO target specified by the respective state commission.
On the other hand, the NLDC defended its decision by referring to the Forum of Regulators Rules, which suggest that compliance should be assessed based on whichever target is higher between the state obligation and the national benchmark.
After examining the matter, the CERC clarified that the national renewable consumption guidelines are intended for monitoring compliance and cannot override the specific provisions contained in the REC Regulations. The Commission observed that Regulation 4(4) of the CERC REC Regulations, 2022, clearly grants eligibility based on the surplus certified by the concerned state commission.
The Commission finally directed the NLDC to issue the remaining 1,19,293 RECs to IPCL and disposed of the petition.
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