Rec Floor Price

According to a cerc order in june the floor price of solar and non solar recs has been reduced to zero from rs 1 000 earlier.

Rec floor price. The current forbearance and floor price of non solar rec is as under. In this case since the new price is higher the producers benefit. Non solar rec rs mwh solar rec rs mwh forbearance price 3 300 5 800 floor price 1 500 3 500 b. More specifically it is defined as an intervention to raise market prices if the government feels the price is too low.

The forbearance price for non solar recs was quoted as 3 000 46 14 mwh and the floor price as 1 000 14 962 mwh. At present the floor price for non solar is rs 1500 rec and forbearance price is rs 3300 rec and for solar the floor price is 9300 rec and the forbearance price is 13400 rec. Need for review of rec forbearance and floor price a. A price floor or a minimum price is a regulatory tool used by the government.

Rec trade result april 2020 the april trade session saw the non solar clearing price maintaining a low profile at the floor price of inr 1 000 at both the exchange platforms. Similarly the forbearance ceiling price of solar and non solar was reduced to rs 1 000 for both from rs 2 400 and rs 3 000 respectively. In so far as non solar rec prices are concerned this was based on generic tariff for. The following is the rec price trend.

Till june 30 2021. The forbearance price and floor price of solar recs were based on solar tariff discovered through competitive bidding and published by the ministry of new and renewable energy mnre up to february 2017. Accordingly the forbearance and floor price for both solar and non solar recs shall now stand as follows. The impact of this price reduction on different aspects is as follows.

Now the revised prices will be effective from july 1 2020 and will be valid for 1 year i e. Recently the commission has removed the rec floor price against its prevailing floor price of rs 1 000 and has also reduced the forbearance price from rs 2 400 for solar recs and from rs 3 000 per rec for non solar recs to rs 1 000. While admitting the appeal the apex court clarified trading in non solar rec issued prior to april 1 2017 will be carried out at the floor price of 1 500 22 215 mwh. The distribution companies open access consumer captive power plants cpps will have option of purchasing the rec to meet their renewable purchase obligations rpo.

The obligated entities or power exchanges will have to deposit 500 7 405 mwh the difference between the previous and the current floor price. Price rs mwh non solar rec rs mwh solar rec rs mwh forbearance price 3 000 2 400 floor price 1 000 1 000. Impact on existing rec projects. Reduction in floor price will aggravate the financial duress of recs based projects.