According to reports, in a reflection of dwindling interest in them, the trading volume of Renewable Energy Certificates (RECs) plunged 87 per cent to 19,212 this month on the Indian Energy Exchange (IEX).
The trading of RECs is conducted on the last Wednesday of every month. They are used as instruments to help entities meet the Renewable Purchase Obligation (RPO) set by states.
“The total trading volumes in RECs registered a steep fall of 87 per cent to 19,212 from a whopping 1,53,130 traded volume in the session held in May 2012,” IEX said in a statement today.
Of the total, non-solar RECs accounted for 18,543 while solar RECs stood at 669. One REC is equivalent to 1 MWh of energy generated from renewable sources.
Further, the traded price of solar REC declined to Rs 11,490 in the latest trading session whereas it was Rs 12,206 per solar REC in April 2013 session.
“The floor price for non-solar REC continued to languish at Rs 1,500/REC for the tenth consecutive month,” IEX noted.
The latest session featured 630 market participants.
IEX said the poor trading response in RECs indicates that “distribution companies and captive power generators did not participate in the market despite the fact that many of these entities are yet to fulfil a large share of their obligation”.
The falling interest in the market is a clear indicator that there is a need for a strict enforcement of RPO regulations by State Electricity Regulatory Commissions, IEX noted.