Sale of green certificates surges 157% to 4.68 L in June

New Delhi, June 30: The number of renewable energy certificates (RECs) traded on exchanges jumped 157% to 4.68 lakh in June compared with 1.82 lakh in May in monthly auction held on Wednesday.

Power distribution companies as well as open access and captive consumers are under obligation to buy RECs from renewable energy producers under the Renewable Energy Purchase Obligation (RPO) mandated by central/state regulatory commission.

Two power exchanges — Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), approved by the Central Electricity Regulatory Commission — hold auction of RECs on the last Wednesday of each month.

“A total of 3.86 lakh RECs were traded in the REC trading session held on 29th June, 2016 at IEX. The market saw 264% increase in trade over 1.06 lakh RECs traded in May 2016. In the same month last year, 1.51 lakh RECs were traded, about 39% of RECs traded in June 16,” IEX said in a statement.

It further stated that in the first quarter of fiscal 2016-17, IEX has traded 7.53 lakh RECs, an increase of over 54% over 4.88 lakh RECs traded in the first quarter of fiscal 2015-16.

Another power exchange PXIL said: “The total cleared volume on the exchange was 82,430 RECs that led to PXIL having a market share of 17.5%. In this month clearing ratio was 1.61% due to low demand side participation from obligated entities to fulfill their RPO.”

“During this trading session, the prices in the solar and non-solar categories have remained at the floor level. Prior to the auction more than 1.70 crore RECs were available in the market for trade; however the traded volume is low on account of non fulfillment of RPO compliance by major utilities,” it added.

PTI