REC Trading in Jan 2013 – Solar REC sales increase by 91% and Price increases by Rs. 140/REC

The first round of REC trading in the new year continued in the same vein as the previous year with some surprises. It should be noted that we are in the last quarter of the compliance year wherein all obligated entities would have to fulfil their obligations or meet with stiff penalties (should they be enforced).
(For an overview and  challenges faced by the RPO/REC mechanism, please click here for a presentation).
Non-Solar RECs
With the end of the financial year approaching, last month (December 2012) saw significant demand in the non-solar REC segment. Though common sense would suggest that this increase in demand would continue till the end of the compliance year,  the demand for non-solar RECs dropped by 29% with a total of 193,337 buy bids for non-solar RECs. The price of the non-solar RECs remained flat at Rs. 1500 per REC with significant excess inventory still remaining (to the tune of 17.8 lakh RECs). This could end up being a huge blow to the developers considering the 365 day life span (under present regulations) of the certificate. In order to address this problem faced by the REC generators, CERC had conducted a hearing on the topic of increasing the validity of RECs beyond 365 days(Click here for more details). The details of the meeting are awaited.
Given below is an overview of the trading.

January 2013

IEX

PXIL

 

Buy Bids

Sell Bids

Volume Traded

Price

Buy Bids

Sell Bids

Volume Traded

Price

Non-Solar

190875

1371503

190875

1500

2462

370389

2462

1500

Solar

40138

3356

2105

12500

2107

203

203

12500

 
Solar RECs
The solar REC segment continued its strong showing. With the supply of solar being limited, the solar REC segment is largely a seller’s market. This is clearly indicated by the number of buy bids for solar RECs which grew by about 1828% over the previous month. The price of the solar RECs too increased by Rs. 140 per REC to end up at Rs. 12500 per REC. The strong demand for solar REC is expected to continue.

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1 thought on “REC Trading in Jan 2013 – Solar REC sales increase by 91% and Price increases by Rs. 140/REC”

  1. Very nice graph and as per result we could see that demand is increase and price is also very good. But have you see demand is increase in Jan 13 but price is remain at most same so as per our market scenario it have to increase.

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