Sale of renewable energy certificates (RECs) increased by around 41.73 percent to 3.19 lakh in November from 2.25 lakh in the previous month. Two power exchanges — Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), approved by the Central Electricity Regulatory Commission — hold auction of RECs on the last Wednesday of every month. However, the auctions at both the exchanges were held on Thursday as Wednesday was a holiday. IEX recorded sale of 1,30,209 RECs while PXIL witnessed sale of 1,89,103 RECs, according to statements issued by two exchanges. Last month, 2,25,293 RECs were sold at the auction at the two exchanges.
“PXIL successfully conducted REC trading for November 2015. The total cleared volume on the exchange was 1,89,103 RECs that led to PXIL having a market share of 59.2 percent,” PXIL said in a statement. This month, clearing ratio was 2.21 percent due to increase in demand side participation. Prior to today’s auction, more than 1.74 crore RECs were available in the market for trade. However, the traded volume is low on account of non fulfillment of RPO compliance by major utilities. The traded volumes are expected to increase in the remaining four months of the financial year as many obligated entities would start purchasing RECs to meet their RPO targets, it said.
A total of 1,30,209 RECs were traded in the REC market session on November 26, 2015, held at IEX. The trade this month saw an increase of over 61 percent over the previous month when a total of 80,608 RECs were traded. “Moreover, the volume traded this month increased by about 40 percent as compared to November 2014 when only 93,345 RECs were traded,” IEX said in a statement. RPO is an obligation mandated by central/state regulatory commission and is applicable to power distribution companies, open access consumer and captive consumers. They are under obligation to buy RECs from renewable energy producers to meet this norm.
Source: PTI
