RE Certificate Transactions Drops 65 percent to 3.68 lakh in April

Transactions of renewable energy certificates plummeted by around 65 per cent to 3.68 lakh units in April as compared to 10.62 lakh in same month last year due to lower supply, as per official data.

Indian Energy Exchange (IEX) and Power Exchange of India (PXIL) are the two power bourses in the country which are involved in trading of renewable energy certificates (RECs) and electricity.

According to official data, IEX saw total trade of 2.24 lakh in April compared to 7.81 lakh in same month last year. Similarly, PXIL recorded sale of 1.44 lakh RECs in the month compared to 2.81 lakh a year ago.

As many as 1,61,949 units of non-solar RECs were traded at IEX, with sell bids for 3,51,915 units and buy bids for 6,97,502 units. Besides, 62,853 units of solar RECs were traded, with sell bids for 1,42,148 units and buy bids for 3,61,606 units in April.

Both non-solar and solar RECs sustained to see low supply situation with buy bids surpassing the sell bids due to very low inventory (supply).

Likewise, at PXIL, for solar RECs, there were sell bids for 78,637 units whereas buy offers were for 1,97,645 units. In the non-solar REC category, the sell bids were for 1,32,223 units while buy bids were for 3,40,999 units in April.

Under the renewable purchase obligation (RPO), bulk purchasers like discoms, open access consumers and capacitive users are required to buy certain proportion of RECs. They can buy RECs from renewable energy producers to meet the RPO norms.