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Renewable Energy Certificate Trade at IEX in India

REC buy bids crosses 1 lakh mark in August trading session on IEX

 

         Non-solar REC                                  Solar REC

Trade Volume (REC)

                22,096                                               –

Sale bid

                49,897                                               –

Purchase Bid

                1,45,204                                            –

Price discovered

            Rs  1,800/REC                                  –

No. of participants

                    123

Market share

                     88%

 

New Delhi, September 2, 2011

 

The August trading session scheduled on 31st August was postponed to 2nd September, the earlier being a bank holiday. In the 2nd September trading session of REC, the exchange received purchase bids of         1, 45,204 Non Solar RECs against the sell bid of 49,897 RECs and 22,096 RECs were traded. The price discovered was Rs 1,800/REC. Earlier NLDC, nodal agency for REC market had issued a total of 31,813 RECs during the month of August and 1,989 were issued on 1st September. No Solar RECs have been issued yet. The cleared volume is 44% of sale bids and 15% of purchase bids. The reason for low cleared volume percentage is price expectation of buyers and sellers are too divergent.

 

Presently, REC eligible generators registered with Central Agency are 151 projects having 967MW capacity.

 

Market share in August trade was 88%, thus showing continued preference of buyers and sellers for IEX platform.

 

Due to mandatory renewable purchase obligation on Open access and captive consumers, the participants have grown exponentially. The current trading session saw 107 buyers and 16 sellers participating in the trading, out of which 4 were DISCOMs. The open access and captive power consumers also purchased significant number of RECs and constituted for 27% of the cleared volume.

 

A total of 4 members and 328 clients have been registered in REC segment at IEX till date. Out of this, 32 are eligible entities, 292 are obligated entities and 4 have been registered as voluntary entities.  The REC market has started picking up pace with 260 RECs in April’11 to 14,002 in May and now 22,096 RECs in August. This shows a growing market for RECs. The market is expected to further grow towards the end of the financial year, when the entities would rush to fulfill their obligation.