With both solar and non-solar renewable energy certificate (REC) trading undergoing a reversal in the demand-supply situation, trading of solar RECs has witnessed a huge slump even as trade in non-solar RECs continues its upward movement in November 2018.

In November 2018, a total of 58,877 solar RECs were traded, which was 217,074 fewer than the 275,951 solar RECs traded in October 2018. On the Indian Energy Exchange (IEX), a total of 32,556 solar RECs were traded with the sell bid at 229,140 and the buy bid at 852,693. On the IEX, the solar RECs were traded at a clearing price of ₹1,101 (~$15.6)/REC.

On the Power Exchange India Limited (PXIL), a total of 26,321 solar RECs were traded with the sell bid at 168,139 and buy bid at 706,300. On the PXIL, the solar RECs were cleared at a price of ₹1,051 (~14.8)/REC.

In November 2018, non-solar REC trade further spiked. Compared to October 2018, in which 427,305 non-RECs were traded, 446,861 non-solar RECs were traded in November; 19,556 more non-solar RECs were traded in November 2018.

On the IEX, a total of 355,657 non-solar RECs were traded with sell bid at 546,155 and buy bid at 675,109. All non-solar RECs were cleared at ₹1,252 (~$17.7)/REC.

On the PXIL, a total of 91,204 non-solar RECs were traded with sell bid at 167,215 and buy bid at 329,196. All non-solar RECs were cleared at ₹1,260 (~$17.8)/REC.

Once again, not a single non-solar REC issued before April 1, 2017 was traded on either of the two exchanges.

When contacted, a market insider informed that they are expecting the trade in solar RECs to pick up only when new inventory comes in. Meanwhile, trade in non-solar REC is increasing as entities are rushing to fulfill non-solar RPOs as an increasing number of state electricity regulatory commissions are cracking down on defaulters.

“But even the existing inventory for wind will be over soon, then maybe we will see more interest being taken in non-solar RECs issued before April 1, 2017,” the source added.

According to another market insider, solar REC trade is further going to slump as there will be fewer generators and projects that supply to REC mechanism. Take for instance, almost 600 MW of projects that had 10-year PPAs will not have a certain future in the next few months as the state government is reluctant. This will further diminish solar REC inventory.

The Central Electricity Regulatory Commission (CERC) recently issued an order extending the validity of RECs which were due to expire between October 31, 2018 and March 31, 2019.