Power Exchange India to start trading in RECs from March 30

Power Exchange India (PXIL) will start trading in Renewable Energy Certificates (RECs) from March 30.

REC is a market-based instrument to promote renewable energy.

"The trading in Renewable Energy Certificates on the exchange would begin on March 30... We have already done mock trading," PXIL's Chief Operating Officer Gyan Mohan said.

A power exchange, Mumbai-based PXIL has been operating a market for physical trading in power since late 2008.

These certificates are aimed at plugging the gap between availability of renewable energy sources and the requirement of various entities to meet their renewable energy purchase obligation.

RECs denote the green attribute of the energy and one certificate would be equal to 1 MW hour of renewable energy generated.

National Load Despatch Centre is responsible for issuance and depository of these certificates.

Noting that a few hundred certificates have already been issued, Mohan said the volumes are expected to be robust by the end of next year.

The trading in RECs is also expected to not only provide an additional source of income for renewable energy generators but could even be used by states, that do not have substantial renewable energy resources.

"The REC framework is expected to give a push to renewable energy capacity addition in the country," according to the Economic Survey 2010-11.

Indian Energy Exchange had launched trading in RECs last month.