It looks like India has taken another step towards a greener world. The sales of Renewable Energy Certificates (RECs) shot up by 245% to 15.68 lakh this Jan, from 4.54 lakh in Dec last year.
As per rules and regulations by the central and state regulatory commissions, the power distribution organizations – even the open access and captive consumers – are obliged to buy their RECs from the renewable energy producers governed by the Renewable Purchase Obligations (RPOs).
RECs aim at offering an easier avenue for all the entities. The power distribution companies by default are included to allow their green energy obligations. The Central Electricity Regulatory Commission has approved Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL), two of the biggest power exchange companies, to regularly host auction of RECs on the last Wednesday of each month.
According to the gathered data, the RECs sale volume at the 2 exchanges in Jan 2017 was 15,68,192 as opposed to 4,54,038 in Dec 2016.
Around 12,87,814 RECs were sold on January 25, as part of the IEX in monthly auction. Last Wednesday, around 2,80,378 RECs were sold at the PXIL.
A statement was made by IEX, “With trade of 12.48 lakh RECs, the market has set an all-time high predominantly on purchase by discoms followed by open access and captive consumers,”
A report was made, according to which, by far this fiscal (i.e. April-Jan) around 31 lakh RECs were traded by IEX. There was an increase in REC volume by more than 412% over 2.51 lakh in the last month of the same financial.
At PXIL, total cleared vol. was 2,80,378 RECs in Jan, when compared with last December 2,02,717 RECs
The officials said in a statement that over 1.92 crore RECs were available for trade in the market, prior to Jan 25. However, the clearance ratio was low.
The clearance ratio and traded volume is estimated to rise further in the remaining 2 monthly sessions. It should be noted that 1 REC is equal to 1 MWh of electric power generated by renewable source. As per the REC mechanism, a unit can generate electric power in any part of the country through renewable resources.