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