According to reports, demand for Indian renewable-energy credits rose to a three-month high in June as state utilities sought to comply with clean-energy targets after being slapped with fines.
There were 139,184 bids to buy wind, hydropower and biomass credits, the most since March, according to data from trader REConnect Energy Solutions Pvt.
The government requires state-run electricity distributors and large industrial companies including Coal India Ltd. (COAL) and Tata Power Co. (TPWR) to get as much as 10 percent of their energy from renewables. Those unable to get enough locally must purchase credits from clean-power plants sold over power exchanges in monthly trading sessions.
Regulators have imposed fines on distribution companies in northern Uttarakhand state and the Union Territory of Dadra and Nagar Haveli in western India, prodding the government-run utilities to buy credits to meet their obligations.
Wind, hydropower and biomass credits traded at their floor price of 1,500 rupees ($25). Solar credits, which trade separately, also cleared at their minimum of 9,300 rupees. Each credit represents 1 megawatt-hour of electricity fed into the grid.