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In a recent case involving Leo Fasteners, a company engaged in wind power generation in Tamil Nadu, India, the National State Load Dispatch Centre (NLDC) faced a petition for the relaxation of time limits and the issuance of Renewable Energy Certificates (RECs). The petitioner sought to condone the delay in applying for RECs covering energy injected from December 2020 to August 2021.
The issue arose because the petitioner had an existing petition, pending with the Commission, requesting condonation of delay for the period from November 2019 to November 2020. Due to this, they refrained from applying for RECs for the subsequent period, assuming it was barred.
The COVID-19 pandemic further complicated matters, causing delays in the application process. The lockdown hindered physical movement and obtaining necessary documentation from the State Load Dispatch Center (SLDC).
The Supreme Court of India, however, had clarified that the period from March 15, 2020, to May 31, 2022, was to be excluded in calculating the period of limitation for legal proceedings, which included the petitioner’s case.
During the hearing on April 24, 2023, the petitioner’s counsel argued that the delay was unintentional. The NLDC expressed no objections to the petitioner’s requests. Consequently, the Commission reserved the petition for orders.
The Commission recognized the procedural nature of the delay and its origins in the pandemic and the petitioner’s misunderstanding of the previous petition. The core purpose of the REC Regulations is to promote renewable energy generation.
Hence, the Commission exercised its authority to provide leniency, allowing for the achievement of the regulations’ goals. This entailed accommodating the delay by relaxing specific procedural requirements in the REC procedures.
The Commission directed the NLDC to issue the RECs after due verification, ensuring that all project conditions were met and all necessary documents were submitted.
The Commission emphasized that while they had granted this relief, the petitioner should adhere to timelines in the future, as compliance with the REC Regulations and Detailed Procedure remains a prerequisite for REC issuance. In conclusion, the Commission addressed the petitioner’s request by condoning the delay and relaxing the time limits, emphasizing the importance of adherence to the REC Regulations in future applications.
Please read the document below for more details.