Industry body Green Energy Association today said it will move the Supreme Court against the tribunal APTEL's order which upheld power regulator CERC's ruling reducing forbearance and floor price of renewable energy certificates (RECs) of solar and non-solar energy.
"The said order is completely insensitive to renewable energy. Green Energy Association will appeal against this order with full might and very hopeful that the justice will be delivered at apex court," the Green Energy Association said in a statement.
Last week, the Appellate Tribunal for Electricity (APTEL) had rejected the petition of Green Energy Association and other similar pleas against the CERC's order.
In its order in March last year, the CERC had reduced floor price of solar RECs from Rs 3,500 to Rs 1,000 and the non-solar RECs prices from Rs 1,500 to Rs 1,000 from April 1, 2017.
The Renewable Purchase Obligation (RPO) is mandated by central/state regulatory commission and is applicable to power distribution companies, open access consumer and captive consumers. They are under obligation to buy RECs from renewable energy producers to meet this norm.
A reduction in benchmark price of solar and non-solar RECs would adversely affect the renewable energy project developers particularly those who invested in green energy when investments as well as tariffs were on higher side, the association said. The RPO was introduced to give a cushion these developers.
"It seems from the initial study of the order, that the Honorable APTEL has taken the decision, not considering the provisions of law but the reported market condition, which is incorrect and incomplete. There is a clear departure from the established facts of law and practices," the Green Energy Association said.
"Though APTEL has taken cognizance of the fact that the major reason of this problem is the failure of enforcement agencies and electricity regulatory body in enforcing RPO, but the APTEL failed to give the desired weightage of more than 50 cases pending at various SERCs (State Electricity Regulatory Commissions) and the APTEL itself. What an irony that some cases at the APTEL for enforcement are pending since last 3-4 years."
"The faith of investor will be shaken, who have been left stranded and will not be able to recover their investment despite the promises made by the central regulator. Investors will lose a significant amount of money and may turn in NPA (bad loans), moreover, this order will severely hamper the claim of ease of doing business in India, New addition of Renewable Energy plant will be impacted," the association claimed.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)