Q3 demand for Indian RECs improves for solar, not for the rest
Demand for both solar renewable energy certificates (RECs) in India in the third quarter of 2016 reached 109,675 sold units, up by 13.35% quarter-on-quarter.
For non-solar RECs there was a decline to 669,423 from 869,740 in the preceding quarter.
Meanwhile, 166,769 new solar and 692,609 non-solar certificates were issued in July-September. At least in the reporting quarter, issuance was in line with demand.
Earlier this year, India changes some rules for REC issuance so certain projects are no longer eligible to participate in the programme. The impact on REC issuance is felt, but still there are millions of unsold RECs as inventory has been piling since 2011, due to weak enforcement of the Renewable Purchase Obligations (RPO). All certificates are trading at bottom pirces.
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.