REC supply in India for Sep 2012 exceeds demand by far
Sep 27, 2012 - The gap between supply and demand for renewable energy certificates (RECs) in India widened in September with 711,000 RECs on sale, 13% more than in August, while demand stood at 264,000, down 6.7%.
Total of INR 410 million (USD 7.7m/EUR 6m) in RECs were sold in September’s trading session on Wednesday, a report by trader REConnect Energy Solutions Pvt shows. The consultancy explained that demand was weak on enforcement concerns related to the Renewable Purchase Obligation (RPO) scheme under which distribution companies and certain consumers are obliged to source a set percentage of their power from renewables.
The total amount of solar RECs sold in September was 1,160, up from only 379 in the previous month, for a total market value of INR 14.6 million. Demand declined by 21% month-on-month to 1,852, while the number of RECs bid for sales tripled to 1,621, REConnect's report shows.
Indian firms that produce green electricity but do not take advantage of the existing feed-in tariffs receive a REC per MWh generated. RECs trading takes place on the last Wednesday of each month on the Power Exchange India Ltd (PXIL) and the Indian Energy Exchange.