7.18 lakh RECs traded in May : IEX

Power exchange IEX today said a total of 7.18 lakh renewable energy certificates (RECs) were traded in May.

"In the trading session held on May 30 2018, the Indian Energy Exchange (IEX) saw total trade of 7.18 lakh RECs comprising 3.24 lakh non-solar and 3.94 lakh solar RECs," it said in a statement.

Power distribution companies as well as open access and captive consumers are under obligation to buy RECs from renewable energy producers under renewable purchase obligation (RPO) mandated by central/state regulatory commissions.

RECs are aimed at providing an easier avenue for various entities, including power distribution companies, to meet their green energy obligations.

Two power exchanges - IEX and Power Exchange India Limited (PXIL), approved by the Central Electricity Regulatory Commission - hold auction of RECs on the last Wednesday of every month.

The non-solar segment continued to see reversal in demand-supply with buy bids exceeding sell bids and price was discovered in the market while just until two months back when the inventory was in excess the trading taking place at the floor price.

Distribution companies such as Torrent Power and Tata Power were the major buyers in this trading session followed by captive power producers and open access consumers who came forward to fulfil their RPO compliance.

A total of 851 participants traded in the trading session.