Solar renewable energy certificate (REC) trading witnessed an unprecedented spike in the month of September 2018. A total of 1,558,062 solar RECs were traded in September 2018. This is 1,071,933 more solar RECs than the 486,129 solar RECs traded in August 2018.
All solar RECs were traded at a floor price of ₹1,000 (~$13.81)/REC.
On the Indian Energy Exchange (IEX), a total of 1,359,045 solar RECs were traded with sell bid at 1,461,202 and buy bid at 2,156,459. On the IEX, a total of 1,142,822 more solar RECs were traded this month when compared to the 216,223 solar RECs traded in August 2018.
On the Power Exchange India Limited (PXIL), a total of 199,017 solar RECs were traded with sell bid at 538,079 and buy bid at 199,017. On the PXIL, 70,889 less solar RECs were traded this month when compared to August 2018.
When contacted, a market insider said, “This month DISCOMs were the major buyers. The seriousness around renewable purchase obligation (RPO) compliance is increasing after the government order. Now, DISCOMs that were carrying forward their RPO have bought a lot. The previous unmet RPO has to be met and this is leading to an increase in trade.”
A total of 655 participants participated in the trading session. Overall, 3,650 participants are registered in the REC segment at IEX out of which 764 are eligible entities (renewable energy generators); 2,780 are obligated entities (DISCOMs, open access consumers and captive generators) and 21 are registered as voluntary entities.
Like August 2018, this month too trade in non-solar RECs witnessed a slight spike. A total of 345,576 non-solar RECs were traded in September 2018. This is 12,097 more non-solar RECs traded compared to the 333,479 non-solar RECs traded in August 2018.
On the IEX, a total of 244,401 non-solar RECs were traded with sell bid at 4,865,60 and buy bid at 5,01,255. The clearing price discovered was ₹1,100 (~$15.19)/REC.
On the PXIL, a total of 101,175 non-solar RECs were traded with sell bid at 106,833 and buy bid at 286,601. The clearing price discovered was ₹1,300 (~$17.95)/REC.
Not a single non-solar REC issued before April 1, 2017, was traded on either of the two platforms. But the price at which non-solar RECs are being traded is gradually increasing.
The market insider also commented that non-solar REC inventory is going down and that’s why the prices are increasing. Past inventory has almost been wiped out. One single DISCOM can sweep off the remaining inventory. This has led to prices rising by almost ₹300 (~$4.135) more than the floor price. This may also lead to a situation where the price can reach ₹1,500 (~$20.67) per non-solar REC, and then maybe buyers will be interested in non-solar RECs issued before April 1, 2017.