Solar REC sales in India more than double in August
Solar park in India built by SunEdison. Author: American Center Mumbai. License: Creative Commons, Attribution-NoDerivs 2.0 Generic
Solar renewable energy certificates (REC) demand in India revived to 41,928 units sold in August 2015, up by 133.6% on July, according to newly released data.
Still, the result is far from this year's solar REC sale record of 83,189. Total of 193,155 solar RECs were issued in August, so the supply and demand imbalance is far from repairing.
This month, 107,281 of non-solar RECs were also redeemed, down from 155,271 in July.
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 poor functioning of the REC market is the result of the weak enforcement of the Renewable Purchase Obligations (RPO).
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.