Green certificates sale dips 13.86% to 1.49 lakh in August

Sale of renewable energy certificates (RECs) has declined 13.86 per cent to 1.49 lakh in August compared to 1.73 lakh in the previous month.
India has two power exchanges -- Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) -- approved by the Central Electricity Regulatory Commission which hold auction of RECs on the last Wednesday of every month.
IEX recorded sale of 1,03,638 RECs while PXIL witnessed sale of 45,571 RECs, according to statements issued by two exchanges. Last month, 1,73,223 RECs were sold at the auction at the two exchanges.
"The REC trading session on August 26, 2015 at IEX, witnessed trade of a total of 1,03,638 RECs - 77,236 N-Solar and 26,402 Solar RECs with an overall market share of 69 per cent," an IEX statement said.

In comparison to the same month last year, market volume increased 5 fold as only 16,103 RECs were traded in August 2014 as compared to 1.03 lakh RECs traded this month.
"Although the REC market has gained momentum in comparison to last year, the traded volumes have been sliding down over the last few months. To ensure a buoyant market, it is imperative that Obligated Entities fulfil their RPO compliance," it added

PXIL said that total cleared volume on the exchange was 45,571 RECs with a market share of 30.54 per cent.
It said the traded volume is low on account of non fulfillment of RPO compliance by major utilities.

"The traded volumes are expected to increase in the coming months as many obligated entities would start purchasing REC's to meet their RPO targets," it added.
RPO is an obligation mandated by Central/State Regulatory Commission and is applicable to power distribution companies, open access consumer and captive consumers. They are under obligation to buy RECs from renewable energy producers to meet this norm.