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.
The trading of Renewable Energy Certificates (REC) commenced from Wednesday 23rd of February, 2011, in the Indian Energy Exchange. The the Power Exchange India Ltd (PXIL) had mentioned that they will start trading in Renewable Energy Certificates (RECs) from March 30.
The first trading session of renewable energy receipts (REC) on March 30, witnessed a total of 424 non-solar RECs traded on two power exchanges.
While 274 non-solar RECs got traded on PXIL at a clearing price of Rs 2225 per certificate, 150 non-solar RECs were transacted on India Energy Exchange at a price of Rs 3,900 per REC for an average price of Rs. 3,062.5.
Technically, March 30 was the second trading session for IEX but the first trading session on March 23 did not see any sell bids . However on March 30, both buyers and sellers participated to fulfil their renewable energy purchase obligation (RPO) at the end of the financial year.
While a total of 70,377 non-solar and 30,001 solar RECs purchase bids were received at IEX, 150 bids got received from selling side of non-solar which were traded. There was no selling side bids for solar.
REC trading for the month of April that was conducted in the two exchanges today, witnessed buy bids for 260 certificates at the floor price with about 4046 certificates that were offered for sale in the India Energy Exchange(IEX). 260 certificates traded at the floor price in 3 transactions with 3 participants in IEX. On the Power Exchange (PXIL), 565 Non Solar REC were offered for sale with no buyers or transactions.