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Renewable energy trading set for big boost as SC upholds green obligation
May 26, 2015
Renewable energy trading set for big boost as SC upholds green obligation
Jyoti Mukul
New Delhi May 26, 2015 Last Updated at 00:03 IST
Compulsory purchase of renewable energy got a major boost last week from a Supreme Court order, even though it is likely to increase the power cost for a host of industries dependent on captive power generation and direct purchase of power for their manufacturing units. With the apex court upholding renewable purchase obligation, power purchasers in all states would have to follow the regulatory norms for renewable purchase obligations (RPO). This would also boost the market for renewable energy certificates (RECs), which are traded and bought to meet the RPO.
The apex court in the order said regulations framed by electricity regulatory commissions imposing obligation upon captive power plants and open access consumers to purchase electricity from renewable sources cannot, in any manner, be said to be restrictive or violative of the fundamental rights. The court ruling, in a case filed by Hindustan Zinc against the Rajasthan Electricity Regulatory Commission, came on May 13. The court also ruled out the case filed by a number of firms, including DCM Shriram, Binani Cements, JK Lakshmi Cement and UltraTech Cement and has favoured the Rajasthan Electricity Regulatory Commission's decision that compelled these players to procure fixed amounts of energy from renewable sources or entitled to pay money, in case they failed to meet the requirements.
Read more at Business Standard.
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