Solar renewable energy certificate (REC) trading witnessed a steep decline in October 2018. A total of 275,951 solar RECs were traded in October 2018. This is 1,282,111 less solar RECs than the 1,558,062 solar RECs traded in September 2018.

On the Indian Energy Exchange (IEX), a total of 130,279 solar RECs were traded with sell bid at 335,003 and buy bid at 576,535. On the IEX, the solar RECs were cleared at a clearing price of ₹1001/REC.

On the Power Exchange India Limited (PXIL), a total of 145,672 solar RECs were traded with sell bid at 239,904 and buy bid at 451,791. On the PXIL, the solar RECs were cleared at a clearing price of ₹1000/REC.

In October 2018, trade in non-solar RECs increased compared to September 2018. This month 427,305 non-RECs were traded, 81,729 more than in September 2018, in which 345,576 non-solar RECs were traded.

On the IEX, a total of 295,010 non-solar RECs were traded with sell bid at 434,675 and buy bid at 724,461. All non-solar RECs were cleared at ₹1251/REC.

On the PXIL, a total of 132,295 non-solar RECs were traded with sell bid at 203,868 and buy bid at 171,295. All non-solar RECs were cleared at ₹1201/REC.

Once again, not a single non-solar REC issued before April 1, 2017 was traded on either of the two exchanges. However , the price at which non-solar RECs are being traded is gradually increasing.

Both solar and non-solar RECs saw a reversal in the demand-supply situation with buy bids exceeding sell bids. The distribution companies were the major buyers in the session followed by captive and open access consumers.

When contacted, a market insider said, “This position might prevail until inventory on the sell side sees an increase. The recent CERC order also had an impact on REC trade this month.”

The Central Electricity Regulatory Commission (CERC) recently issued an order extending the validity of RECs which are due to expire between October 31, 2018 and March 31, 2019. The commission observed that 183,999 RECs that were issued before April 1, 2017 are due to expire within the next six months. This includes 38,651 Solar RECs and 1,45,348 Non-Solar RECs. The commission felt that there is a need to extend the validity of these RECs. Therefore, RECs which are due to expire between October 31, 2018 and March 31, 2019 will now remain valid up to April 31, 2019

Image credit: Suzlon