Larger interest of buyers has triggered the increase in the prices of Renewable Energy Certificate (REC). The latest numbers reveal that the prices have rocketed up by about 16 per cent setting the new bar of Rs 1,800 a unit.
The REC trade comes into action on the last Wednesday of every month. The trading session scheduled on August 31 was postponed to September 2.
This year REC trading started in February. The bids to buy RECs overtook the one-lakh mark for the first time since the trading started.
The buy bids marked 1,45,204 against 81,493 of last trade in July while the bids offered by sellers also increased from 34,976 in the previous trade to 49,897 in this year. The number traded of RECs ascended to 22,096 against 14,668.
According to an Indian Energy Exchange (IEX) official, the rise of almost 50 per cent reflects an increasing interest in the market mechanism. Since April, the REC trade which was confined to non-solar RECs has now picked up pace. Nodal agency for REC market, The National Load Dispatch Centre issued a total of 31,813 certificates for August and 1,989 were issued on September 1.
Huge number of Participants
109 buyers (108 non-solar and 1 solar) and 16 sellers participated in the latest trading session. Reliance Energy Trading Ltd, Instinct Infra & Power Ltd, Knowledge Infrastructure Systems Pvt Ltd, Manikaran Power Ltd, PTC India Ltd and REConnect Energy Solutions Pvt Ltd. were major traders and buyers among the participants.
Entities are enthusiastic about trading. Once they get a clearer picture of their actual renewable energy obligation they will pound in, said the officials. With Central Electricity Regulatory Commission’s regulations, commissions in 24 States have made open access and captive consumers obligated for renewable purchase in line.