AAI’s New Tender Seeks Engineering Consultancy for a 5 MW Solar Project at Calicut Airport

There was a significant increase in the trade volume of both solar and non-solar renewable energy certificates (RECs) in February.

A cumulative sum of 1,299,737 solar RECs was traded on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Out of the total, 984,157 and 315,580 solar RECs were traded on the IEX and PXIL, respectively.

Compared to January 2020’s REC trading session, there was a huge upsurge in the solar RECs on both the platforms. The momentum has sustained itself from January, which also saw a rise in trade volume.

In January 2020, a cumulative sum of 76,220 solar RECs was traded on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Out of the total, 39,413 and 36,807 solar RECs were traded on the IEX and PXIL, respectively, according to Mercom’s January update.


Solar REC Market Trading

On the IEX, the sale bid in February 2020, was at 1,014,459 and the buy bid was at 1,094,700. Whereas on PXIL, the sale bid went up to 332,042, and the buy bid was at 365,463, totaling to 315,580.

February 2020 witnessed some reduction in the price of the non-solar RECs when compared with the previous month.

On the IEX, the price of non-solar RECs dropped by ₹400 (~$5.59) from ₹2,200 (~$30.68) to ₹1,800 (~$25.10), a drop of 18.2% compared to January 2020.

Non-Solar REC Market Trading

However, on the PXIL, the drop in the price of non-solar RECs was ₹50 (~$0.70). In January 2020, the price stood at ₹2,100 (~$29.28). There was a slight dip in February, with the price coming down to ₹2,050 (~$28.59).

A spokesperson of PXIL told Mercom that the price dropped primarily due to the increase in the number of sellers in February 2020.  “There were a few distribution companies who had a big sale, leading to a drop in price,” he added. Also, the deadline for the yearly compliance (March 31) and the price in the last volume are the other reasons,” he added.

On the IEX, a total of 507,153 non-solar RECs were traded with 2,779,466 sale bids and 661,976 buy bids. The month witnessed an increase of 57% on the IEX platform.

On the PXIL platform, the trade volume was 335,520, with 843,886 sale bids and 498,335 buy bids for all RECs issued after April 01, 2017, showing a rise of almost 96.4% in February 2020.

In January 2020, it was reported that the Central Electricity Regulatory Commission extended the validity of RECs up to March 31, 2020. The Commission stated that the validity of the 9,514 RECs (4,960 solar RECs and 4,960 non-solar RECs) issued before April 1, 2017, which expired in November 2019, needs to be extended.

Image credit: Adani Solar