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Agri-Solar Solutions Provider GK Energy Files Papers for ₹5.01 Billion IPO

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					</table>State power distribution companies (DISCOMs) owed power generators ₹653.51 billion (~$7.71 billion) in total dues for the monthly billing cycle in November 2024, according to the <a href="https://powermin.gov.in/">Ministry of Power</a>’s payment ratification and analysis portal <a href="https://praapti.in/" target="_blank" rel="noopener">PRAAPTI</a>.
The DISCOMs <a href="https://www.mercomindia.com/discoms-dues-624-billion-october" target="_blank" rel="noopener">owed </a>power generators ₹623.9 billion (~$7.41 billion) in October.
The current outstanding dues, excluding the latest monthly dues of ₹408.16 billion (~$4.81 billion), are ₹245.45 billion (~$2.89 billion).
The overdue before the trigger date is ₹242.17 billion (~$2.85 billion), after which the amount will increase by ₹3.27 billion (~$38.59 million) as the late payment surcharge (LPS) would apply.
The trigger date is one month after the payment due date or two and a half months after the generating company presents the bill, whichever is later.
The DISCOMs are allowed to pay the outstanding amount in up to 48 installments.
For the third consecutive month, Uttar Pradesh DISCOMs had the highest dues at ₹86.73 billion (~$1 billion), followed by Maharashtra at ₹60.14 billion (~$709.76 million) and Tamil Nadu ₹49.74 billion (~$587.02 million).
The Grid Controller of India recently <a href="https://www.mercomindia.com/update-rules-late-payment-surcharge/" target="_blank" rel="noopener">released</a> an updated procedure to implement the Electricity (Late Payment Surcharge and Related Matters) Rules 2022 and subsequent amendments. The procedure applies to intra-state and inter-state generators, licensees, and distribution entities, focusing on payment security, power scheduling, and addressing non-payment scenarios.
In October, the Ministry of Power <a href="https://www.mercomindia.com/rules-strengthen-discoms-financial-disclosure" target="_blank" rel="noopener">issued</a> the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2024, to enhance transparency in financial disclosures and bolster regulatory compliance for DISCOMs. The rules aim to ensure that entities are financially safeguarded against long-term defaults by mandating provisions for receivables and enforcing the reporting of trade receivable days.
The twelfth annual integrated ratings of DISCOMs <a href="https://www.mercomindia.com/gujarat-discoms-top-annual-ratings" target="_blank" rel="noopener">recorded</a> significant financial and operational performance shifts. Of the 55 DISCOMs evaluated for the financial year 2023, 17  improved their grades, while 14 were downgraded.
Fourteen DISCOMs achieved an A+ grade compared to 10 last year. Six of these top DISCOMs are from Gujarat, three from Odisha, and two from Haryana. Eight of these top performers are privately owned companies.

DISCOMs Owe Power Generators ₹653 Billion in November

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					</table>The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) paid solar and wind power producers ₹9.07 billion (~$108.9 million) for the energy purchased in November 2023.
The disbursement reflected a <a href="https://www.mercomindia.com/seci-subsidy-october-2023/" target="_blank" rel="noopener">decline </a>of 9% from October but <a href="https://www.mercomindia.com/seci-pays-7-billion-solar-wind-developers-november" target="_blank" rel="noopener">increased</a> by 15% on a year-over-year basis.
In November, disbursements to solar and wind developers constituted 96.5% of the total payments. The nodal agency disbursed a total of ₹9.4 billion (~$112.8 million) during the month.
SECI disbursed ₹134.5 million (~$1.6 million) to compensate a contractor involved in the execution of the agency&#8217;s project by Tata Power Solar Systems.
The agency reimbursed ₹115.8 million (~$1.4 million) to solar power developers against goods and services tax, safeguard duty, and basic customs duty claims under the annuity method. Azure Power Forty Three, Clean Solar (Bhadla), SB Energy Four, Azure Power India, and SBG Cleantech Projecto Five were the major beneficiaries.
A total of ₹36.7 million (~$440,562) was disbursed to contractors and service providers.
During the month, SECI disbursed ₹35.5 million (~$426,318) towards transmission charges to Rajasthan Rajya Vidyut Prasaran Nigam, Madhya Pradesh Power Transmission Company, and Gujarat Energy Transmission Corporation.
It also met corporate social responsibility expenses to the tune of ₹6.8 million (~$81,603).
SECI disbursed ₹1.6  million (~$19,501) towards open access charges. JSW Renew Energy Two was the sole beneficiary.
It reimbursed ₹1.09 million (~$13,095) to power project developers against basic customs duty claims.
Recently, SECI <a href="https://www.mercomindia.com/seci-%E2%82%B910-billion-term-loan-300-mw-solar/" target="_blank" rel="noopener">invited</a> bids from scheduled commercial banks or financial institutions for a term loan of ₹10 billion (~$120.24 million) to develop a 300 MW solar power project in the Ramagiri village of Sri Satya Sai District in Andhra Pradesh.
Earlier, SECI <a href="https://www.mercomindia.com/seci-capital-credit-facility-6-billion" target="_blank" rel="noopener">invited</a> quotations for a short-term working capital credit facility of up to ₹6 billion (~$72.3 million) to help it make monthly payments to solar, wind, and hybrid energy projects.
SECI <a href="https://www.mercomindia.com/seci-revenue-power-trading-100-billion" target="_blank" rel="noopener">earned</a> over ₹100 billion (~$1.22 billion) in revenues from trading renewable power in the financial year 2022-23, the highest ever since its inception.

SECI Disbursements to Solar and Wind Generators Rise 15% YoY in November 2023

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 189 million units (MU) of green energy during November 2023, a 46.61% year-over-year (YoY) drop from 354 MU.
Green energy trade has continued to slide throughout 2023, given the considerable drop in renewable generation due to seasonality and increased power demand across the country.
IEX  cited the government data published in November 2023, stating the country&#8217;s energy consumption reached 120 billion units, representing an 8.5% increase YoY.
The Green Day-Ahead Market (GDAM) segment recorded trading of 182 MU, a 36.81% YoY drop. The segment saw participation from 182 market participants, achieving a weighted average price of ₹5.05 (~$0.061)/kWh.
The Green Term-Ahead Market (GTAM) achieved 7 MU volume with only non-solar power traded at an average monthly price of ₹6.22 (~$0.075)/kWh. Trading in the GTAM segment was down 89.3% YoY from 66 MU.
The Exchange recorded 9,136 MU of overall volume traded during November, including 755,000 Renewable Energy Certificates (REC), a 17.5% YoY increase. The total electricity trade volume stood at 8,371 MU, surging by 13% YoY.
Prices on the Exchange witnessed a downward trend, with the average monthly prices reaching their lowest levels this financial year, offering distribution companies and industrial consumers an opportunity to optimize their power costs.
Renewable Energy Certificates
A total of 755,000 RECs, equivalent to 755 MU, were traded during the two sessions held on November 8 and November 23. The REC volume was up 103% YoY from 217,000 RECs.
The REC clearing price for both the sessions stood at ₹375 (~$4.50)/REC.
The next trading sessions at the IEX are scheduled for December 13 and December 27.
Energy Saving Certificates 
The Energy Saving Certificates (ESCert) trading for PAT Cycle-II concluded on October 30, 2023, with 544 Designated Consumers and 40 successful trading sessions. In all, 1.32 million ESCerts were traded on the IEX.
Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market
The Day-Ahead Market (DAM) segment saw 5,144 MU volume traded during the month, a YoY increase from 5,087 MU.
The market clearing price at the segment was ₹3.98 (~$0.048)/kWh, a decline of 13% YoY. The price decline was attributed to factors such as lower demand due to the festive season, temperature drop, and much-improved sell-side liquidity on the platform.
The Real-Time Electricity (RTM) market segment recorded a 68% jump from November 2023 to 2,359 MU from 1,407 MU in November 2022.
The Day-Ahead Contingency and Term-Ahead Market (TAM), comprising contingency, daily/weekly, and monthly contracts for up to three months, traded 679 MU during the month, a 24% YoY increase.
Mercom recently <a href="https://www.mercomindia.com/green-energy-trading-takes-hit-2023" target="_blank" rel="noopener">reported</a> on the factors influencing the drop in green energy trade in 2023 at the IEX. Seasonality, floods, and inconsistent renewable energy generation were a few of the many reasons identified to be behind the drop in renewable energy trade. The increasing power demand and the drop in renewable generation have forced entities to trade mostly on the conventional electricity market, in turn reducing the buy bids in the green market segments.
The renewable energy units <a href="https://www.mercomindia.com/iex-lowest-green-trade-188-mu-october" target="_blank" rel="noopener">traded</a> at the IEX in October 2023 dropped to 188 MU, the lowest recorded in 2023, a 53.35% YoY and 18.26% month-on-month drop.

Green Energy Trade at IEX Continues to Dip, 189 MU Traded in November

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					</table>Here is a recap of important headlines from November 2022:
India <a href="https://mercomindia.com/indias-solar-power-generation-rises-by-36-yoy-in-9m-2022/" target="_blank" rel="noopener">generated</a> around 70.24 billion units (BU) of solar power in the first nine months (9M) of the calendar year (CY) 2022, a 36% increase compared to 51.67 BU during the same period last year. Solar generation has been on an upward trend since 9M 2018 when it hit 26.45 BU. The increase in overall solar power generation is attributed to the new capacity additions during the first nine months of the year.
Mumbai-based rooftop solar start-up SolarSquare <a href="https://mercomindia.com/solarsquare-raises-12-8-million-series-a-funding/" target="_blank" rel="noopener">raised</a> ₹1 billion ($12.8 million) as part of its series A funding round led by Elevation Capital and U.S.-based climate-focused fund Lowercarbon Capital. SolarSquare designs, installs, and finances rooftop solar systems for homes and provides rooftop solar solutions for housing societies and commercial establishments. The funds will be used to shore up the company’s presence in the next 18-24 months and deploy the investment to ramp up its installations to build a seamless user experience.
Tata Power Solar, Amplus Solar, Fourth Partner Energy, Roofsol Energy, and Havells India <a href="https://mercomindia.com/top-rooftop-companies-1h-2022-tata-power-amplus-fourth-partner/" target="_blank" rel="noopener">were</a> the top solar rooftop companies in India in the first half (1H) of the calendar year (CY) 2022, according to Mercom’s recently released India Solar Market Leaderboard 1H 2022.
The Ministry of New and Renewable Energy <a href="https://mercomindia.com/mnre-approves-%e2%82%b98-5-billion-national-bioenergy-program/" target="_blank" rel="noopener">notified</a> the National Bioenergy Program, valid from FY 2021-22 to FY 2025-26. The program has been recommended for implementation in two phases. A budget outlay of ₹8.58 billion (~$104.66 million) has been approved for Phase-I. Out of the total budget, ₹6 billion (~$73.18 million) has been approved for the waste-to-energy program, ₹1.58 billion (~$19.27 million) for the biomass program, and 1 billion (~$12.19 million) for the biogas program.
The Directorate General of Trade Remedies <a href="https://mercomindia.com/anti-dumping-probe-on-solar-module-imports-from-china-thailand-vietnam-terminated/" target="_blank" rel="noopener">terminated</a> the anti-dumping probe on solar cells imports from China, Vietnam, and Thailand. The probe was terminated after the petitioner, the Indian Solar Manufacturers Association, submitted that basic customs duty (BCD) on solar cells and modules covered the entire scope of the product under investigation and alleviated the price pressure on the domestic industry to a considerable extent.
India <a href="https://mercomindia.com/india-installs-a-record-10-gw-of-solar-in-9m-2022/" target="_blank" rel="noopener">installed</a> a record 10 GW of new solar capacity during 9M of 2022, an increase of 35% YoY, according to Mercom India Research’s newly released <a href="https://mercomindia.com/product/q3-2022-india-solar-market-update" target="_blank" rel="noopener">Q3 2022 India Solar Market Update</a> report. In 9M 2022, India added over 12 GW of total power capacity, with 76% of the new capacity coming from solar power. India’s cumulative installed solar capacity now stands at 60 GW. The country has a utility-scale project pipeline of over 58 GW. Nearly 46 GW of tendered projects await auction.
Jinko Solar, Trina Solar, JA Solar, LONGi Solar, and Adani Solar were the leading module suppliers to the Indian solar market in 1H CY 2022, according to Mercom’s recently released <a href="https://mercomindia.com/product/mercoms-india-solar-market-leaderboard-1h-2022-market-shares-and-profiles" target="_blank" rel="noopener">India Solar Market Leaderboard 1H 2022</a>. The top five module suppliers accounted for 52% of the market share. Besides Adani Solar, two other Indian module manufacturers made it to the top 10 module suppliers list.
Sungrow, Sineng Electric, FIMER India, Ginlong (Solis) Technologies, and SOFARSOLAR <a href="https://mercomindia.com/sungrow-sineng-fimer-solis-top-solar-inverter-companies-in-1h-2022/" target="_blank" rel="noopener">were</a> the leading solar inverter suppliers in India in 1H CY 2022, according to Mercom’s recently released <a href="https://mercomindia.com/product/mercoms-india-solar-market-leaderboard-1h-2022-market-shares-and-profiles" target="_blank" rel="noopener">India Solar Market Leaderboard 1H 2022</a>.
India <a href="https://mercomindia.com/bcd-effect-indias-solar-imports-down-exports-surge-in-q3-2022/" target="_blank" rel="noopener">exported</a> solar cells and modules worth $157 million (~₹12.76 billion) in the third quarter (Q3) of CY 2022, an increase of 642% YoY compared to 21.17 million (~₹1.72 billion), according to the Department of Commerce data. On a QoQ basis, exports went up by 499% from $26.22 million (~₹2.13 billion). Imports of solar cells and modules during the quarter declined by 59% YoY to $394 million (~₹32.02 billion) as a result of BCD and Approved List of Models and Manufacturers (ALMM). On a QoQ basis, imports fell by 34% from $597.48 million (~₹48.55 billion).
Tata Power Solar, Jakson Green, and Voltas <a href="https://mercomindia.com/tata-power-jakson-voltas-top-epc-players-1h-2022/" target="_blank" rel="noopener">were</a> the top utility-scale solar engineering, procurement, and construction (EPC) service providers in 1H CY 2022, according to Mercom’s recently released <a href="https://mercomindia.com/product/mercoms-india-solar-market-leaderboard-1h-2022-market-shares-and-profiles/" target="_blank" rel="noopener">India Solar Market Leaderboard 1H 2022</a>.
India <a href="https://mercomindia.com/india-adds-1-2-gw-rooftop-solar-9m-2022/" target="_blank" rel="noopener">installed</a> over 1.2 GW of rooftop solar capacity in 9M CY 2022, a decline of 11% YoY, according to Mercom India Research’s newly released <a href="https://mercomindia.com/product/rooftop-solar-market-report-q3-2022/" target="_blank" rel="noopener">Mercom India Rooftop Solar Market Report Q3 2022</a>. In the third quarter (Q3) of CY22, India installed over 320 MW of rooftop solar capacity, a YoY decline of approximately 29%. On a QoQ basis, installed capacity fell by 18%. Cumulative rooftop solar capacity at the end of Q3 CY22 reached 8.3 GW.
Investments in the Indian solar sector in Q3 CY 2022 totaled $2 billion (~₹161.1 billion), a 30% QoQ decrease compared to the $2.9 billion (~$220.6 billion) in Q2 2022. Investments were down 45%  YoY from $3.7 billion (~$271.2 billion). The figures were revealed in Mercom India Research’s latest report, <a href="https://mercomindia.com/product/q3-2022-india-solar-market-update/" target="_blank" rel="noopener">Q3 2022 India Solar Market Update</a>. In Q3 2022, solar installations fell by 32.5% QoQ, with several large projects postponed to future quarters, directly resulting in lower investments.

Month in a Minute: Top Headlines from Indian Renewable Sector in November 2022

The Solar Energy Corporation of India (<a href="https://www.seci.co.in/Upload/New/637786551697320481.pdf" target="_blank" rel="noopener">SECI</a>) disbursed ₹5.52 billion (~$74.13 million) to solar and wind power developers for the power procured in November 2021. The disbursed amount accounted for 91% of the overall amount paid by the nodal agency for November 2021.
SECI disbursed a total of ₹6.06 billion (~$81.4 million) for the month, including solar and wind power purchases, developers’ reimbursement, duties, and other reimbursements.
The monthly payment by SECI is a considerable relief for renewable developers burdened by the unpredictable schedules of distribution companies (DISCOMs) for paying dues.
According to the data released by the Ministry of Power, DISCOMs <a href="https://mercomindia.com/discoms-owed-%e2%82%b9194-52-billion-to-renewable-generators-december-2021/" target="_blank" rel="noopener">owed</a> ₹194.52 billion (~$2.61 billion) to renewable energy generators, excluding disputed amount, in overdue payments at the end of December 2021. The amount <a href="https://mercomindia.com/discom-dues-renewable-generators-rise/" target="_blank" rel="noopener">was</a> 3% lower than ₹200.85 billion (~$2.69 billion) for November 2021.
Under the annuity method, the nodal agency reimbursed ₹108.37 million (~$1.45 million) to solar power developers against Goods and Services Tax (GST) and Safeguard Duty claims.
SECI released ₹1 million (~$13,373) as subsidy for the rooftop solar program and ₹34.60 million (~$462,635) towards transmission charges.
The agency released ₹381.63 million (~$5.10 million) as subsidy under the viability gap funding program and ₹16.68 million (~$223,067) as a payment to contractors and service providers.
It also paid ₹1.63 million (~$21,793) as open access charges.
The agency had <a href="https://mercomindia.com/seci-releases-%e2%82%b95-21-billion-for-solar-wind-power-purchased-october/" target="_blank" rel="noopener">disbursed</a> ₹5.21 billion to solar and wind developers for the power purchased in October 2021. The disbursed amount accounted for 96% of the total amount paid by the nodal agency in October 2021.
In August 2021, the Central Electricity Regulatory Commission <a href="https://mercomindia.com/discount-rate-annuity-payments-solar/" target="_blank" rel="noopener">reiterated</a> SECI’s proposal for a 10.41% discount rate on annuity payments towards the additional expenses incurred by solar power developers on account of ‘Change in Law’ events. The central regulator directed solar power developers to pay all statutory taxes, duties, levies, and cess on monthly annuity payments per power purchase agreements.
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SECI Pays ₹5.52 Billion for Solar and Wind Power Purchased in November 2021

Distribution Companies (DISCOMs) owed renewable energy generators ₹118.6 billion (~$1.6 billion) in overdue payments (excluding disputed amounts) across 452 invoices at the end of November 2020, according to data from the Ministry of Power (MoP).
In October 2020, DISCOMs owed renewable generators ₹110.67 billion (~$1.5 billion) in overdue payments against 439 pending invoices.
Outstanding payments (excluding disputed amounts) in November stood at ₹5.2 million (~$71,343), according to data from the MoP’s payment ratification and analysis portal (<a href="https://praapti.in/" target="_blank" rel="noopener noreferrer">PRAAPTI</a>).
DISCOMs paid ₹15.3 billion (~$209,914) towards their outstanding dues and ₹91.5 billion (~$1.3 billion) towards overdue amounts during November. Outstanding amounts are payments that have been delayed by over six months.
At the end of the month, 65 DISCOMs owed 230 generators ₹1.29 trillion (~$17.7 trillion) in overdue payments against 21,977 overdue invoices. Outstanding payments stood at ₹117.5 billion (~$1.6 billion) at the end of the month.
<a href="https://mercomindia.com/wp-content/uploads/2021/01/DISCOMs-Dues-to-Power-Generators.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-23663" src="https://mercomindia.com/wp-content/uploads/2021/01/DISCOMs-Dues-to-Power-Generators.png" alt="DISCOMs Dues to Power Generators" width="635" height="313" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/01/DISCOMs-Dues-to-Power-Generators.png 635w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/01/DISCOMs-Dues-to-Power-Generators-300x148.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/01/DISCOMs-Dues-to-Power-Generators-624x308.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/01/DISCOMs-Dues-to-Power-Generators-600x296.png 600w" sizes="(max-width: 635px) 100vw, 635px" /></a>
Rajasthan continued to hold the highest overdue payments to generators at ₹393.8 billion (~$5.4 billion), of which ₹367.6 billion (~$5.04 billion) has been overdue for more than 60 days. Tamil Nadu was close behind with ₹218.3 billion (~$2.9 billion), of which ₹196.9 billion (~$2.7 billion) has been overdue for over 60 days.
Gujarat, Haryana, Bihar, Jharkhand, West Bengal, Sikkim, Arunachal Pradesh, Nagaland, Manipur, and Mizoram were rated the “Best” in terms of ease of payments by DISCOMs in November. Uttar Pradesh, Odisha, Telangana, Assam, and Meghalaya were rated “OK,” Himachal Pradesh was rated “Bad,” while all other states were given the “Worst” rating.
The non-conventional power generators who were owed the most were Adani Green Energy Limited, NLC India Limited (RE), and Tata Power Company Limited with ₹12 billion (~$164.6 million), ₹11.6 billion (~$159.2), and ₹22.7 billion (~$311.4 million) in pending dues, respectively, as of November 2020.
In October, DISCOMs <a href="https://mercomindia.com/discom-dues-renewable-generators-2/" target="_blank" rel="noopener noreferrer">owed</a> over ₹110.67 billion (~$1.5 billion) to renewable energy generators (excluding disputed amounts) in overdue payments across 439 pending invoices.
Power producers across the country are reeling under the enormous stress of delayed payments by DISCOMs. Recently, the Association of Power Producers even <a href="https://mercomindia.com/power-producers-say-tangedco-demanding-heavy-discounts-on-pending-dues/" target="_blank" rel="noopener noreferrer">complained</a> that Tamil Nadu Generation and Distribution Corporation is forcing them to accept heavy discounts on dues payable.
The situation in Andhra Pradesh is worsening. The National Solar Energy Federation of India <a href="https://mercomindia.com/npa-renewable-industry-inevitable/" target="_blank" rel="noopener noreferrer">warning</a> of the Indian banking system at the risk of suffering NPAs to the tune of ₹150 billion (~$2.04 billion) to ₹180 billion (~$2.4 billion) due to the delays in payments by the state DISCOMs to renewable power generators. The Federation has also <a href="https://mercomindia.com/solar-developers-seek-centers-help/" target="_blank" rel="noopener noreferrer">requested</a> the Union Power Minister for the release of payments by Power Finance Corporation and REC Limited to renewable energy developers having power purchase agreements with Andhra Pradesh distribution companies.

DISCOMs Dues to Renewable Generators Rise to ₹118.6 Billion in November

In the November 2019 renewable energy certificate (REC) trading session, there was a significant decrease in the number of solar and non-solar RECs that were traded when compared with the preceding month.
A total of 54,453 solar RECs were traded on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) together. A total of 36,801 and 17,652 solar RECs were traded on the IEX and PXIL, respectively. These RECs were traded at ₹2,400 (~$33.9)/REC, and the price remained unchanged on both the trading platforms.
In October 2019, Mercom reported that RECs were at <a href="https://mercomindia.com/october-solar-rec-trading-sees-record-high-price/" target="_blank" rel="noopener noreferrer">a record high price</a> of ₹2,400 (~$33.9)/REC.
According to the IEX, the increase in REC prices lately has mainly been due to the shortfall on the REC inventory, which has been continuing since March 2019.
<a href="https://mercomindia.com/wp-content/uploads/2019/12/Solar-REC-Market-Trading.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-16606" src="https://mercomindia.com/wp-content/uploads/2019/12/Solar-REC-Market-Trading.png" alt="Solar REC Market Trading" width="398" height="145" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/12/Solar-REC-Market-Trading.png 398w, https://cms.mercomindia.com/wp-content/uploads/2019/12/Solar-REC-Market-Trading-300x109.png 300w" sizes="(max-width: 398px) 100vw, 398px" /></a>
The number of solar RECs traded in November 2019 was down by around 45% when compared with the numbers traded on the IEX and PXIL in October 2019.
On the IEX and PXIL, a total of 451,220 non-solar RECs issued after April 1, 2017, were traded. On the IEX, 291,932 non-solar RECs were traded at the rate of ₹1,800 (~$25)/REC. This was ₹150 (~$2.12)/REC more than the rate at which it was traded on the IEX in the previous month.
On the PXIL, 159,288 non-solar RECs were traded at a rate of ₹1,850 (~$25)/REC; this was again an increase of ₹200 (~$2.12)/REC when compared with the price of these RECs in October 2019.
<a href="https://mercomindia.com/wp-content/uploads/2019/12/Non-Solar-REC-Market-Trading.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-16609" src="https://mercomindia.com/wp-content/uploads/2019/12/Non-Solar-REC-Market-Trading.png" alt="Non-Solar REC Market Trading" width="391" height="191" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/12/Non-Solar-REC-Market-Trading.png 391w, https://cms.mercomindia.com/wp-content/uploads/2019/12/Non-Solar-REC-Market-Trading-300x147.png 300w" sizes="(max-width: 391px) 100vw, 391px" /></a>
Buy bids continue to outpace sale bids for solar and non-solar RECs as the supply side of the REC market continues to languish.
An executive from IEX commented on the trend saying, “With buy bids doubling the amount of sell bids on an average, the situation of the REC trading market has not changed in the past nine months. REC inventories remain low, which is not healthy for the market.”
In <a href="https://mercomindia.com/rec-inventory-exhausted-what-next/" target="_blank" rel="noopener noreferrer">June 2019</a>, Mercom reported that India’s REC inventory was almost exhausted.
Since 2017, there has been a significant increase in the purchase of RECs due to stricter norms regarding Renewable Purchase Obligation (RPO) compliance. Before that, entities were not actively buying RECs. As these entities started buying late, there is now a demand and supply gap that does not appear to be subsiding.

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