Solar renewable energy certificate (REC) trading slumped in August 2018, whereas non-solar REC trading climbed up after months of decline.

In August 2018, 486,129 solar RECs were traded. This was 896,503 solar RECs fewer than the 1,382,632 solar RECs traded in July 2018. All solar RECs were traded at a price of ₹1,000 (~$14.50).

On the Indian Energy Exchange (IEX), a total of 216,223 solar RECs were traded. Total of 216,223 buy bids were registered against 1,458,702 sell bids. This was 592,101 less solar RECs traded on IEX when compared to the 808,324 solar RECs traded on IEX in July 2018.

On the Power Exchange India Limited (PXIL), a total of 269,906 solar RECs were traded. Total of 269,906 buy bids were registered against 940,011 sell bids. This was 304,402 fewer when compared to the 574,308 solar RECs traded on PXIL in July 2018.

When contacted, Mercom’s source at PXIL said, “This is not that big a slump when we see solar REC trade. If you compare it to August 2017, the numbers are still high. In July 2018, one or two large utilities came and purchased solar RECs leading to large trade volume. Towards the end of year again trading will pick up, we are expecting November to be that month that has a huge surge in solar REC trading. Moreover, solar RPO obligation is less compared to non-solar, that is another reason why through many months solar REC trade is low.

Unlike the previous trading session, this time around, non-solar REC trading underwent a spike. Like the previous trading session, the non-solar RECs in this session were traded in two categories: RECs issued before April 1, 2017, and RECs issued after it.

A total of 333,479 non-solar RECs were traded in August 2018. This is 98,042 more when compared to the 235,437 non-solar RECs traded in July 2018.

Per IEX, a total of 291,588 non-solar RECs were cleared in August at a price of ₹1,200 (~$17.00)/REC.

Per PXIL, 41,891 non-solar RECs were traded in August at a price of ₹1,101 (~$15.59)/REC.

Not a single non-solar REC issued before April 1, 2017, was traded on either of the two platforms.

When asked why not even a single non-solar REC issued before April 1, 2017, has been traded, the PXIL source replied, “Since it is priced at ₹1500 (~$21)/REC, nobody will buy it when cheaper non-solar RECs are available.”