CERC passes suo moto order in matter of determination of buyout price as an alternate compliance mechanism towards fulfilment of RCO

The Central Electricity Regulatory Commission (CERC) has passed a suo motu order to determine the buyout price as an alternative compliance option for fulfilling the renewable consumption obligation (RCO). The RCO mandates a minimum share of energy consumption from renewable sources by designated consumers, including discoms, open access users and captive consumers. The notification outlines three fulfilment methods: direct renewable energy consumption, renewable energy certificate (REC) purchase and payment of a buyout price. The proposed buyout price must reflect the cost of green attributes equivalent to REC pricing plus a premium, and will not include electricity charges.