May 28 (SeeNews) - Solar renewable energy certificate (REC) demand in India jumped in May to the record-high 83,189 sold units, from just 8,522 in April, according to newly released data.
Meanwhile, 256,579 units of non-solar RECs were redeemed for the month, which compares to just 55,612 in April and 654,985 in March.
Both types of certificates have been trading at bottom prices since the summer of 2013 and 2012, respectively, due to the huge gap between supply and demand. The number of issued RECs in May stood at 821,264, while the total demand was 339,768. The poor functioning of the REC market is the result of the weak enforcement of the Renewable Purchase Obligations (RPO).
The bottom price for solar RECs was cut by the government to INR 3,500 (USD 55/EUR 49.7?????/) apiece from the start of 2015, from INR 9,300 previously, in a bid to boost demand. The minimum trading price for non-solar RECs remains INR 1,500 per certificate.
Under the REC scheme, renewable power producers in India receive credits for the power they produce if they do not take advantage of other incentives. The RECs are traded on the last Wednesday of each month on the Power Exchange India Ltd (PXIL) and the Indian Energy Exchange (IEX). Utilities and certain other power consumers are obliged to buy RECs or produce green electricity to help offset their environmental footprint.