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Trading in RECs falls by 4% this fiscal

FE Bureau
India Energy Exchange, renewable energy certificates , REC inventory, REC trading session, IEX

Trading in renewable energy certificates (RECs) witnessed a 4% year-on-year decline this year, with the
India Energy Exchange (IEX) cumulatively trading 89,55,572 RECs this year against last year s 93,29,253.
The decline in trade was mainly due to lower REC inventory, which kept lower supplies of renewable energy to the grid.

REC inventory are those renewable energy credits attributable to the generating plants that own electricity generated from the renewable source first and then push it to the grid. REC, a market-based instrument, certifies that the bearer owns one megawatt hour of electricity generated from renewable sources. Once the provider has fed the renewable energy into the grid, they receive the REC which they can sell in the open market as a commodity.

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IEX regulatory affairs vice-president Shruti Bhatia said the concluding REC trading session for the fiscal was held on March 27 and it saw a total trade of 9,34,160 RECs comprising 7,16,929 non-solar RECs and 2,17,231 of solar RECs. The non-solar RECs were traded with a trade bid of 7,57,242 and buy bid of 10,39,447. The clearing discovered was Rs 1,500 per REC.

Solar RECs discovered a higher price of Rs 2,000 per REC with the solar RECs traded with a sell bid at 3,05,049 and buy bid at 6,86,784. Both solar and non-solar RECs continued to remain low in supplies during most time of the year, for which buy bids exceeded sell bids, Bhatia said, adding that the price for both non-solar and solar RECs saw a month-on-month increase of 8% and 33%, respectively after April 2017.

While the distribution companies were the key buyers, a lot of captive users and open access consumers participated in the March trading session. A total of 1,163 participants participated in the March trading session of the overall 3,463 participants that are registered in the REC segment at the IEX.