According to reports, as many as 168,685 renewable energy certificates were traded on the two power exchanges on Wednesday. The trading session (that is, for May) also saw the first solar RECs traded on the markets.
(RECs are generation-based ‘certificates’ awarded — electronically, in demat form — to those who generate electricity from renewable sources such as wind, biomass, hydro and solar, if they opt not to sell the electricity at a preferentially higher tariff. These certificates are tradeable on the exchanges and are bought by ‘obligated entities’ that are either specified consumers or electricity distribution companies. These obligated entities may either be required to purchase a certain quantum of either green power or RECs. Trading happens on the last Wednesday of each month.)
On the Indian Energy Exchange, 153,125 non-solar RECs were traded for an average price of Rs 2,402. On the Power Exchange of India, 15,550 non-solar RECs were traded for an average price of Rs 2,150.
Indore-based M&B Switchgear, which was recently given India’s first solar RECs, sold 10 certificates today (five in each of the two exchanges) for a price of Rs 13,000, which is close to the ceiling price of Rs 13,400 fixed by the government.
“This particular session was of significant importance since we were expecting to trade the first ever Solar REC in India. It was also heartening to see the rise of Solar REC market in India as well robust demand in non-solar space. This should boost confidence level of investors for REC mechanism in both solar as well as non-solar space,” says Mr Vishal Pandya, Director, REConnect, a consultancy that operates in the REC market, whose clients accounted for 56 per cent of the volumes traded on Wednesday.