REC Trading – September 2013 – Solar Gains

REC trading for the month of September 2013 concluded on Wednesday. The trading statistics indicate that there has been a gain in the volume of solar RECs traded in the month while the abysmal trend associated with the non-solar REC segment continues with the supply-demand gap widening every month.

Non-Solar RECs
Following the hammering that the non-solar REC market took last month, the non-solar REC segment witnessed modest gains this month. The number of buy bids increased by about 22% over previous month with the traded volume increasing by a similar amount. The number of sale bids grew further increasing by about 16% compared to previous month. The likelihood that the non-solar RECs will witness any significant gains in prices considering the immense supply surplus with less than 2% of the total available supply being sold.
The solar REC segment posted slight gains this month. The demand for solar-RECs increased by a healthy 64% compared to last month with the total volume traded correspondingly increasing by 64%. The supply however continues to grow with the total volume available for sale increasing by about 39%. Considering the increase in demand in the current month, the demand-supply gap should shrink slightly. If this trend continues, we could witness a rebound in the solar-REC segment with the solar REC prices increasing.
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4 thoughts on “REC Trading – September 2013 – Solar Gains”

  1. It is a pity that due to lax compliance, the REC market is not performing. The buyers of REC would be only private entities who have to meet the obligation, whereas Govt. utiities and DISCOMs do not comply. The whole objective of REC was ‘unequal resource distribution’ in the country and the capital cost of putting up a renewable energy based power plant and of course the environment protection concern – globally as well as domestically.
    On top of this, there are news in the market that the benchmark prices for Solar REC would be soon revised downwards. This will further bring down the profitability of Solar energy plants.
    Unless GoI makes stricter compliance, the REC market would not improve. Simply flogging private ‘obligated entities’ only to comply would not serve the purpose.
    Kamal Garg

  2. the root couse is discom reforms and bring in efficiency to improve thr financial condition with revenue realization n collection efficiency either thru private investment or using IT. without tht all complaince will be on paper only.

  3. Thats really a great news that the REC’s sale has been increased as compared to last month (Solar and Non solar)..
    Sept-2013 trading, for a solar demand has been increased by 62% and supply has been increased by 34% as compared to last trading session..
    wonderfull and great work done by regulators of Delhi,MaharashtraKarnataka,Punjab,Chattisgarh;they hve already summoned their respective discoms and capative/open access consumer to meet their current RPO as well as past that is dued since a year.
    looking forward for increase in demand of REC nearly of 50 lakhs included 10% of which is solar REC…
    Keen to see the opprtunities in REc market
    Dheeraj Chawla
    National Power Training Institute

  4. It’s great concern for Solar Power Producers under REC scheme:
    – In current scenario, REC Solar Projects are not bankable, due to uncertainty of realisation of REC price, hence directly affect a proper security for bank loans.
    – Only on proper panelty provision, Solar RPO obligations shall be complied by Govt. owned power companies
    – In the uncertain REC market, Solar Power investors are diverting to Govt. PPA projects, flat tariff PPA and private PPA.
    Govt. and regulatory must look into to provide a stable REC trading market for Sunny future of Solar Projects in India.
    CA Yogesh Birla
    Birla Wealth & Project Management Co.
    (Solar Project Div.)
    Rajasthan – INDIA

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