REC Trading October 2013 – Non-solar REC trade triples; Solar REC posts 28.4% growth

The REC trading for the month of October that took place on 30th October 2013. The trading of both non-solar and solar RECs showed marked improvement from previous month. The details of the trading are as follows
The sale of non-solar REC increased by 3 times from the previous month, but it was still lower than that record trade volumes experienced in the month of July 2013. The trading price continued to be at the floor of Rs. 1500/REC.

However, only about 4% of the total non-solar RECs that were available for sale were actually bought. On the positive side, this is still an improvement from the previous month when only 1.4% of the RECs available were bought.

Solar REC

Solar REC trading increased by 28.4% from the previous month, but the price remained at the floor of Rs. 9,300/REC.

13.6% of the total solar RECs available were bought. This is a marginal improvement from the corresponding number of 13.4% from the previous month.

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8 thoughts on “REC Trading October 2013 – Non-solar REC trade triples; Solar REC posts 28.4% growth”

  1. Re-Solve team, any idea on the how much days left for the expiry of the non-Solar REC which are pending to be sold at present ? and what expiry time left of is the maximum lot among the unsold non-Solar REC ?

  2. Dear Madhavan,
    Your detailed information on Rec’s Trading is highly informative.
    We were in plan of starting 2 MW Solar Power Plant in A.P. for captive energy.
    Thank you very much for all the good things done for the Renewable Energy Activity.
    With best regards,
    Paul Koti.

  3. Dear Mr. Madhaven,
    The present situation with the solar REC trade in India is a hindering foreign investors. The PPA price is in general declining and added with the poor performance of the solar REC trade, foreign investors are reluctant to enter the market.
    Has the government considered this aspect and why is it that the solar obligation of 6% annual consumption is still on the side lines. India really has to revamp its policies and pull their socks in order to make headway.
    your comments will be appreciated.

    1. Tony,
      The 6% solar purchase obligation is specific only to Tamil Nadu and not all states in the country. Secondly, with a view to boosting solar REC sales and making the market less volatile, the various state electricity regulatory councils are stepping up the enforcement of the RPOs. It is estimated that with these renewed efforts on the RPO enforcement, at least 50% of the left over inventory of solar RECs could be cleared easily right now.

  4. Dear Mr. Madhavan Nampoothiri,
    First let me congratulate you for this very useful website. Me along with my friends are planning to start a 1MW solar power plant based on REC mechanism. The minimum solar REC price till 2017 looks attractive. But looking at the solar REC trading stats for the last 12 months, it looks like a scary world. The revenue generated by PPA price, helps to pay the finance interest but the real money comes from REC trading (until 2017).
    Can you kindly answer my queries?
    1) Are there any steps from state and central govts to enforce solar purchase obligation, if yes what are those?
    2) what happens if the REC certificates are unsold and expire after 24 months of issue?
    3) Are there any chances that REC would be cancelled after 2017
    Thanks in advance,

    1. Dear Suresh,
      Thank you very much for the feedback. My answers are given below.
      a. Central Government cannot enforce RPOs because this is under the jurisdiction of the state regulators(SERCs).
      b. Last year, there were many RECs that were unsold and expired, and the CERC intervened in extend the expiry date. We have to hope that CERC will intervene once again if the RECs expire due to lack of demand.
      c. If the grid-parity is achieved, i.e if the APPC price and the cost of generation of solar converge, then there is no need for the REC mechanism. If APPC still remains far lower than the cost of generation of solar power, RECs might continue.

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