New Delhi : Rays Power Experts, a leading solar power EPC and Development Company and many other similar solar power companies which come under Solar Power Society (SPS) condemned the lackadaisical attitude of the government when they submitted a letter to various ministries regarding procurement of Renewable Energy Certificates (REC) through National Clean Energy Fund (NCEF). The ministries have not even acknowledged or signed the receiving of the letter which was meant to address the problems faced by renewable energy market.

The letter emphasized and urged the Government to leverage the National Clean Energy Fund as a means to uplift the renewable energy market.

REC mechanism is based on the fact that State DISCOMs and captive consumers are entities who have to meet certain obligation to increase the percentage of renewable energy in the total electricity produced. Investors produce renewable energy and feed it into grid and get the REC certificates for that energy fed into the grid. These REC’s are further traded in the market at a certain price decided by central government.

Mr Rahul Gupta, Director, Rays Power Experts, a leading solar power development company, says, “It has been observed from the previous trading sessions that REC trading percentage has decreased drastically and investors are not getting the expected returns to pay back the bank loans they took to setup the project. If the scenario continues then this may discourage investors to enter the renewable energy market. This may impact the overall growth of the infrastructure sector.”

“It is unfortunate that the ministries are delaying the process by ignoring the whole issue. There is an urgent need to make the electricity market more investor friendly so that we can achieve the goal of  providing per unit of electricity to per person”, Mr Gupta further added.