The distribution companies are free to purchase renewable energy in excess of the stipulated Renewable Purchase Obligation (RPO).
The Central Electricity Regulatory Commission (CERC) has received representation from the Gujarat Urja Vikas Nigam that distribution licensees who are purchasing renewable energy over and above their minimum purchase obligation at preferential tariff should be made eligible entity for Renewable Energy Certificates (RECs), in lieu of such excess energy. The Chief Minister, Government of Punjab has also made a similar request.
CERC vide Order dated 2 December 2013 has observed that the existing provisions of eligibility in the REC Regulations which is limited to generating companies is adequate at this stage of development of REC market. It however, taken note of the submissions and concerns regarding issuance of RECs to the distribution licensees in excess of their RPOs and directed staff to examine the issue and submit a proposal to address the problem, if any, for consideration of the Commission. It may be mentioned that amendment to the Regulations is a quasi-judicial process and the CERC takes a view after following due process of law including public hearing.
This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply on 7th Feb, 2014 in the Lok Sabha.