REC Trading – June 2014 – Nonsolar REC trading almost quadruples

The REC trading session for the month – June 2014 concluded yesterday. The major story last month was the booming solar REC trade numbers which indicated growing interest in solar REC. However, solar REC trading dropped by about 22% this month compared to last month’s numbers. While the drop in solar REC trading is disheartening, non-solar REC trading gained significantly this month with the traded volume almost quadrupling compared to last month’s numbers with an increase in traded volume of about 377%.

The non-solar traded volume is the highest seen so far this financial year. However it is still a far cry from the largest ever trading session seen in March 2014. The increase in traded volume could be chalked up to the announcement made by the Joint Electricity Regulatory Commission (JERC) which seeks to ensure RPO compliance and impose penalties in case of non-compliance.

JERC which has governance over electricity regulation in UTs and Goa has cracked down on the issue of non-compliance in these regions stating that Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu have failed to meet their RPO tragets. It has also mentioned that Goa and Puducherry haven’t met their solar RPO targets. JERC has directed the utility of Dadra & Nagar Haveli to deposit Rs. 110 crores with the state designated agency by 30th September 2014 should it not fulfil its RPO targets by 21st July 2014.

Both Solar and non-solar RECs continue to be traded at their floor price of Rs. 9,300 and Rs.1,500 per REC respectively.

Solar REC

recsolarjune

Non-Solar REC

recnonsolarjune

REC Inventory

recinvetoryjune

Details of last month’s trading can be accessed here.

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3 thoughts on “REC Trading – June 2014 – Nonsolar REC trading almost quadruples”

  1. encouraging to see some regulators crack the whip on non-compliance. hope it is a sign of things to come and augurs well for the REC developers.

  2. amarjeet singh

    the trend seems to be higher trading in the 2nd half of of the financial year or last 2 quarters. Hence to spread the trading evenly across the year. CERC need to bring out amendments for quarterly targets for RPO fulfillment for discoms, CPPs, OA, etc customers which will help in making trading yr round activity and not just 6 months in a year as it seem from the above charts.

    1. Dear Amarjeet,
      You are absolutely right. Quarterly targets have been talked about for a long time, and there does not seem to be any major difficulty in implementing the same. Not sure what is preventing CERC from implementing it.
      Madhavan

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