CERC Directs Delhi International Airport Ltd to Apply for Fresh Accreditation for RE Certificate

CERC Directs Delhi International Airport Ltd to Apply for Fresh Accreditation for RE Certificate

The Central Electrcity Regulatory Commission has approved the plea of Delhi International Airport Limited (DIAL) seeking relaxation of Renewable Energy Certificate (REC) norms owing to change in legal status. It has directed DIAL to apply afresh for accreditation and registration of REC. The petition by DIAL had been filed against the National Load Despatch Centre (NLDC) and Power System Operation Corporation Limited.

DIAL is a subsidiary of GMR Airports Limited- a public Ltd firm. GMR Airports Limited holds 64% shares in the DIAL and has been awarded concession by the Government of India to operate, manage and develop IGI Airport at New Delhi. NLDC is the nodal agency for issuance of RECs as as per the REC Regulations, 2010.

DIAL had set up 2.14 MW, 5.0 MW and 2.84 MW solar plant located at IGI Airport under Central Electricity Regulatory
Commission (terms and conditions for recognition and issuance of Renewable Energy Certificate for renewable energy generation) Regulations, 2010 (REC Regulations, 2010). The DIAL had put up a request to CERC to direct NLDC and Power System Operation Corporation Limited for the updating and reissuing of the Certificate of Accreditation, Certificate of Registration and Renewable Energy Certificates in the new name of the petitioner firm, that is, Delhi International Airport Limited, for its 2.84 MW solar plant and 5 MW solar plant.

The DIAL  had applied for the registration of its 2.14 MWp, 5.0 MWp and 2.84 MWp Solar Plant situated at IGI Airport under REC Regulations, 2010 towards change of name from Delhi International Airport Private Limited to Delhi International Airport Limited. NLDC had rejected the request on the ground that the change is not a name change but change in legal status of the firm. The NLDC reasoned that there is a change in legal status of DIAL as the firm has converted from a private limited company to a public limited company.

The CERC reasoned that the renewable power was generated by the DIAL being the renewable energy-generating
station itself. As per the principle laid down for grant of RECs, if the petitioner is engaged in generation of electricity from renewable energy sources, it shall be eligible for issuance of RECs subject to the eligibility criteria.It cited REC Regulations, 2010 to support this by stating that its main objective is to encourage the generation of renewable energy. Further, the change of legal status of the firm from private limited to public limited became a necessity because of operation of law. This is as per the provision of Companies Act, 2013. Under this law, the petitioner company is a deemed public company since it a subsidiary of a company not being a private company, namely, GMR Airport Limited. Thus, the name of the DIAL was changed from Delhi International Airport Private Limited to Delhi International Airport Limited.

To conclude its order, the CERC cited a previous example, where it was held that in cases where there is no change in Corporate Identification Number (CIN number), there is no change of legal status and RECs ought not be withheld on that ground.

While exercising the “Power to Relax” under REC Regulations, the CERC added that because of the change in legal status, the DIAL must apply afresh for accreditation and registration with the concerned nodal agencies. Without afresh accreditation and registration, the firm is not entitled to the REC in its name. Once it gets the fresh accreditation and
registration, the DIAL can approach NLDC for issuance of RECs in its favour. The NLDC was also directed to issue RECs in favour of the DIAL.

Recently, the Tamil Nadu Energy Regulatory Commission (TNERC) had given a nod to Tamil Nadu Generation & Distribution Corporation’s plea to sell green power to high-tension customers with REC.

Renewable Energy Certificates encourage the generation and employment of renewable energy, paving the way for 100% use of sources of renewable energy.