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Home » CER » Power Exchange India Ltd (PXIL) will start trading in Renewable Energy Certificates (RECs) from March 30,2011

Power Exchange India Ltd (PXIL) will start trading in Renewable Energy Certificates (RECs) from March 30,2011

The Electricity Act 2003 (EA 2003) stimulated the development of RE based power generation by mandating State Electricity Regulatory Commissions (SERC) with the function of RE promotion within the State. Under EA 2003, the SERCs set targets for distribution companies to purchase certain percentage of their total power requirement from renewable energy sources. This target is termed as Renewable Purchase Obligation (RPO).

 REC mechanism was -proposed to enable and recognize the inter-State RE transactions is critically required for further promotion and development of RE sources.

Renewable Energy Certificate (REC) mechanism is a market-based instrument to promote renewable energy and facilitate renewable energy purchase obligations amongst various stakeholders.

One REC will be issued to the RE generator for one MWh electrical energy fed into the grid. The RE generator may sell electricity to the distribution company and associated RECs to the distribution company or any other obligated entity.

In January this year, The Union Cabinet approved the proposal of the Ministry of Power to amend Para 6.4(1) of the Tariff Policy, which provides for Non-conventional sources of energy generation including co-generation. The present amendment in para 6.4(1) of the Tariff Policy is as per the proposal of the National Solar Mission strategy (Implementation of the National Solar Mission) which was approved by the Cabinet in its Meeting held on November 19, 2009.

As Panchabuta had reported,  trading of Renewable Energy Certificates (REC) commenced from Wednesday 23rd of February, 2011, in the Indian Energy Exchange.

Now according to a report, the  Power Exchange India Ltd (PXIL) will start trading in Renewable Energy Certificates (RECs) from March 30. “The trading in Renewable Energy Certificates on the exchange would begin on March 30. We have already done mock trading,” PXIL’s Chief Operating Officer Gyan Mohan said.

5 comments

  1. Hi Panchabuta,

    I must point out that REC was traded in IEX is not correct. The first set of certificate which is to be traded has only been issued in March on Friday, 4th March 2011. Obviously trade cannot happen on certificate, which were not in existence.

    Thanks

    • Yogesh Parashar

      “As Panchabuta had reported, trading of Renewable Energy Certificates (REC) commenced from Wednesday 23rd of February, 2011, in the Indian Energy Exchange.”

      The point made in the sentence is correct. It says that the trading was commenced on 23/02/2011 which means procedure for the trading started. This was the first session and 136 BUY bids for (11-solar and 125-non-Solar) RECs were received by IEX. Since you rightly said that the first REC was issued on 4th march, there was no sale bid in the first session.

  2. sir
    I may please ask one question.

    Whether a RE generator will henceforth avail both benefits of carbon credits and REC or he will only be entitled for one benefit of REC.

    If he is entitled for both benefits then what will be the other formula for getting carbon credit benefits.
    Thanks
    anand mohan

    • As of now, it is possible for a RE generator to avail both REC and CDM benefits.

      For doing so – the criteria needed for both the mechanism need to be fulfilled independently.

      Regards
      Kedar

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