The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

India’s REC Market Crashes

India’s Renewable Energy Certificate (REC) trading fell by 87 percent in May, according to the Indian Energy Exchange (IEX), with sellers outnumbering buyers for the first time. Total trading volume fell to 19,212 compared to 153,130 in May 2012, IEX said in a statement.

The crash is due to a supply glut that is expected to continue as the number of RECs injected into the market keeps pace with or outpaces the number purchased. And in a new development, the solar renewable energy credit (SREC) market, which has hitherto been more resilient than the wider REC market, hit its lowest price to date, said an analysis by RESolve Energy Consultants in Chennai. RESolve noted that buy bids for SRECs fell 76 percent from the previous month.

Hari Manoharan, an analyst with RESolve’s solar and wind energy division, expects the SREC supply to increase due to numerous REC-based power projects coming up in Rajasthan, and suggests that unless counter-measures are rapidly taken, the SREC market could suffer the same collapse as the wider market.

Under the nation’s renewable energy purchase obligation (RPO), Indian power distribution companies are required to buy 5-10 percent of their electricity from renewable sources or purchase RECs in lieu. Project developers are granted one REC for every 1 MWh generated from renewable sources.

The Economic Times newspaper called the poor market showing “a reflection of dwindling interest” in RECs, reporting that developers have accumulated over 21 lakh (2100,000) RECs while barely 2 percent of this amount was sold in May. The IEX said: “Distribution companies and captive power generators did not participate in the market despite the fact that many of these entities are yet to fulfill a large share of their obligation.” 

Penalties for non-compliance with the RPO “have not been enforced to a significant extent,” according to Sanjay Chakrabarti, head of Ernst & Young’s India cleantech practice. 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, the IEX said. And Suresh Prabhu, a former environment minister and power minister, has said investment in Indian renewable energy is at risk, blaming regulators for their inability to enforce the RPO.

“[The] Renewable Purchase Obligation is part of the Electricity Act itself and regulator has to decide its quantum from time to time. Non-compliance of this obligation will jeopardise investments in [the] renewable sector,” Prabhu said. 

This article is part of our regional news briefs in the upcoming completely redesigned Renewable Energy World digital magazine. Subscribe here to recieve a free copy.

Lead image: Red graph down via Shutterstock

Untitled Document

Get All the Renewable Energy World News Delivered to Your Inbox - FREE!

Subscribe to Renewable Energy World Magazine and our award-winning e-Newsletter to stay up to date on current news and industry trends.

 Subscribe Now


US Senate Democrats Unveil Energy Bill That Restores PTC and Extends ITC

Brian Eckhouse, Bloomberg Senate Democrats unveiled a bill that would provide more tax credits for renewable energy while killing some tax ince...

US, China Solar PV Players Team Up, Invest $100MM in Chile, Uruguay and Japan

Andrew Burger Private equity infrastructure specialist Hudson Clean Energy Partners and Hong Kong-based independent power producer ...

CEO Gilles: Challenge in Geothermal is to 'Level Playing Field' with Wind, Solar

Jennifer Delony The current challenge for the geothermal energy industry is what U.S. Geothermal CEO Dennis Gilles calls “leveling th...

NRG Energy to Form Renewable Unit, Sell Wind Assets to Yieldco

Mark Chediak and Matthew Monks, Bloomberg NRG Energy Inc., the worst-performing member of the S&P 500 Utilities Index this year, said it will form a renewa...


Solar Power World Ranks Florida Solar One a Top 400 Solar Installer

Florida Solar One, a Miami Fort Lauderdale solar contractor is ranked among the top sol...

Niner Wine Estates Powers 100 Percent of Winery Operations with REC Solar

The 388 KW solar system installed by REC Solar will pay for itself in approximately fiv...

AWS Truepower Makes Wind Project Design More Effective with Less Effort with New Openwind® Version

AWS Truepower, LLC, an international leader in renewable energy consulting and informat...

US Solar Institute Chosen for Military Solar Training at Patrick Air Force Base

In August 2015, the Air Force chose The US Solar Institute (USSI) for a specialized sol...



Geothermal Visual: GEA, Clean Energy Organizations Tell Congress: We Need Tax Extenders 'As Soon As Possible'

In a letter dated Oct. 5, over 580 signatories representing clean energy industries, including Geothermal Energy Asso...

It's All About The Why

Why do people buy your product or service? This is a question that you should keep in your mind at all times and remi...

Tracked Community Solar Gardens Bloom

Victor Delgado and his wife Norma had been watching their utility bills slowly climb since they bought their home in ...


Renewable Energy World's network editors help deliver the most comprehensive news coverage of the renewable energy industries. Based in the U.S. and the UK, the team is comprised of editors from Pennwell Corporation's myriad of publications that ...


Volume 18, Issue 4


To register for our free
e-Newsletters, subscribe today:


Tweet the Editors! @jennrunyon



Successfully Integrating Solar: A Proactive Approach

•      What does the increasing solar penetrati...

Canadian Solar Inverters Webinar

Canadian Solar is proud to be hosting two free webinars in October! The ...

Doing Business in Europe – in partnership with GWEC, the Global Win...

There is now 128.8 GW of installed wind energy capacity in the EU (appro...


How To Speak, How To Listen

As sales professionals, effective communication is paramount to our succ...

Get In The Habit

We all develop habits throughout our lives. Sometimes they’re bene...

Becoming An Efficiency Sales Professional

In order to become a sales professional, you must first realize that: E...


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now