Excellent Solar REC Trading in Opening of the year 2013

Posted · Add Comment

The Solar REC trading for the month of January 2013 concluded yesterday. In contradiction to the trend of last few months, the opening month of this year has posted strong gains in volume. The Solar REC cleared volume is of 203 REC on PXIL and 2105 REC on IEX. This time REC trading showcased an impressive growth of 126% growth over last month’s trading session on IEX whereas on PXIL there is reduction of 26%. This can be due to the fact that maximum trading is happened on IEX. Considering the number of clearing volume that is maximum RECs are traded in IEX (90%) so we will discuss further for IEX on

IEXL TradingIn total buy bids 40,138 this is 24 times as compare to the previous month. IEX extended their dominance in the REC trading market with 90% Solar RECs traded while PXIL saw trading of only 10% certificates. As pointed out earlier, the growing dominance could very likely make IEX the sole exchange in the REC market. But while trading only PXIL has shown growth of maximum clearing price of REC and that is by Rs 400 per REC (increase of 3.3%)whereas IEX shown as decrease of Rs 120 per REC (decrease of 1%

PXIL TradingBoth IEX and PXIL cleared Solar RECs at a price of Rs. 12,500 per certificate. The number of participants in IEX has shown a tremendous growth of 100% for bidding of RECs.

Participant

 

 

 

 

 

 

 

 

 

 

 

Conclusion

This can be due to approaching the end of financial year. This is a clear indication that companies, now more than ever are trying to fulfil their RPO as the window to do so is starting to close (March 2012 being the final month to fulfil current obligations).

The growth in the solar REC buy bids shows the growing appetite for these specific RECs while there is virtually no supply for these certificates at this time (Buy bid 40,138 and sell bid 3356). Power producers looking to setup a solar PV plant under the REC route can virtually command any price that they want.

It is unlikely that project developers are going to face difficulties in getting their RECs sold in the near term as the demand continues to soar while the supply is unable to keep up, especially in the solar REC segment which has seen very low sale bids as compare to non-solar RECs.

 

Abbreviations

REC: Renewable Energy Certificate

RPO: Renewable Purchase Obligation

PV: Photovoltaic

IEX: Indian Energy Exchange

PXIL: Power Exchange of India Ltd

CV: Clearing Volume

MCP: Minimum Clearing Price

Posted By: Rajesh Kumar Ghorla, Consultant – Renewable Energy and Energy Efficiency

Leave a Reply

Your email address will not be published. Required fields are marked *