Maharashtra Sets ₹2.72/kWh as Generic Tariff for Solar and ₹2.87/kWh for Wind

After surging in February 2019, the trade in solar renewable energy certificates (RECs) declined in March 2019.

The decline in the number of RECs traded is a result of low REC inventory. In March 2019, a total of 346,383 solar RECs were traded on the Indian Energy Exchange (IEX) and the Power Exchange India Limited (PXIL). This is 62,281 fewer solar RECs than the 408,764 solar RECs traded in February 2019.

On the IEX, a total of 271,231 solar RECs were traded at ₹2,000 (~$28.20)/REC. There has been an increase of ₹500 (~$7.06)/REC in the price of solar RECs traded on the IEX when compared to the last month. In February 2019, solar RECs were traded at ₹1,500 (~$21.15)/REC. A total of 305,049 sale bids and 686,784 buy bids were registered on the IEX for solar RECs.

On the PXIL a total of 129,152 solar RECs were traded in March 2019. The solar RECs traded at ₹1,700 (~$23.97), a decline of ₹208 (~$2.5), when compared with the price of ₹1,908 (~$26.90)/REC registered in February 2019.

In all, 831,378 non-solar RECs issued after April 1, 2017, was traded in March 2019. This was 20,293 more (issued after April 1, 2017) than the 811,085 non-solar RECs traded in February 2019 on the IEX and PXIL together.

On the IEX, 716,929 non-solar RECs issued after April 1, 2017, were traded at ₹1,500 (~$21.15). The sale bid was placed at 757,242 while the buy bid was 1,039,447. There was an increase of ₹105 (~$1.48)/REC in the price when compared to the last month in which the price of a non-solar REC was valued at ₹1,395 (~$19.67).

On the PXIL, 114,449 non-solar RECs issued after April 1, 2017, traded at ₹1,395 (~$19.67)/REC, with the sale bid at 355,727 and the buy bid at 139,814. There was a decline of ₹160 (~$2.31)/REC in the price when compared to the previous month in which the price per non-solar REC was ₹ ₹1,555 (~$21.93).

Not a single non-solar REC issued before April 01, 2017 was transacted in this trading session.

An IEX official informed, “Buy bids were more than sale bids; and the prices shot up. Even the inventory of RECs has gone down drastically as entities are more conscious about fulfilling RPO requirement in light of government order and creation of RPO compliance cell. Prices will further increase. There were many entities that were waiting till year end to procure RECs for RPO fulfillment. The sellers have benefited as they just waited and haven’t put entire inventory on sale as they know that demand is going to be high. Generally SERCs provide utilities up to June to comply with RPO, prices will increase further in the coming months.”

The distribution companies were the major buyers in March 2019 REC trading session followed by captive users and open access consumers.