The number of renewable energy certificates traded on exchanges rose by over 9 per cent to 2.98 lakh in August compared with 2.73 lakh in July. Power distribution companies as well as open access and captive consumers are under obligation to buy RECs from renewable energy producers under the Renewable Energy Purchase Obligation (RPO) mandated by central/state regulatory commission.
Two power exchanges — Indian Energy Exchange (IEX) and Power Exchange IndiaLimited (PXIL), approved by the Central Electricity Regulatory Commission — hold auction of RECs on the last Wednesday of every month. “Total of 1.58 lacs RECs were traded in the REC trading session held on 31st August, 2016 at IEX. The number of RECs traded this month is almost at par with the 1.63 lacs RECs traded in July, 2016,” IEX said in a statement.
It further said, “The purchase this month is mainly on account of obligated captive power and open access consumers. This financial year from Apr’16 – Aug’16, REC trade at IEX is 10,74,973 which is 50 per cent higher than trade of 716,926 RECs in the same period last year.” PXIL said, “The total cleared volume on the exchange was 1.40 lakh RECs that led to PXIL having a market share of 47.03 per cent.” It further said, “Prior to the auction (held yesterday) more than 1.69 crore RECs were available in the market for trade; however the traded volume is low on account of non fulfillment of RPO compliance by major utilities.