According to reports, after months of tepid trading, sale of ‘Renewable Energy Certificates’ (RECs) at the power trading body India Energy Exchange (IEX) witnessed a rise in the current trading session.
The trading session at IEX featured trade of 98,921 non-solar and 6,548 solar RECs with supply far exceeding demand. However, the trading session saw the buy volume increasing by almost 140% over the previous month largely due to increased buying by the power distribution companies.
In the non-solar segment, buy bids of 98,921 RECs and sell bids of 24, 47,684 RECs were received against which 98,921 were cleared at Rs 1,500 per REC.
In the solar segment, buy bids of 6,548 RECs and sell bids of 48,515 RECs were received against which 6,548 RECs were cleared at Rs 9,300 per REC.
Due to dearth of buyers, RECs market crashed recently with both solar and non-solar certificate price stooping to their floor price. There are currently 27 lakh REC lying unsold.
Calculations by IEX and ministry of new and renewable energy show that at the current level of renewable purchase obligation (RPO), the cumulative requirement for all states would be 1.14 crore non-solar RECs and 16 lakh solar RECs in 2012-13. For 2013-14, the requirement would go up to 1.67 crore non-solar and 21 lakh solar RECs.
Pre defined solar RPO target for all states, as mentioned in ‘National Tariff Policy’ currently ranges from 0.25% to 1.90% of their requirement. Non-solar obligation is in a larger band of 2.5% to 10%. Solar power rich states like Gujarat and Rajasthan are the only ones to achieve their solar-RPO targets.