Sales of renewable energy certificates (RECs) jumped 42 per cent in April to 10.62 lakh units on the Indian Energy Exchange (IEX) and Power Exchange of India (PXIL) compared to 7.46 lakh in the same month a year ago, as per official data.
The Renewable Purchase Obligation (RPO) is 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.
The auction of RECs is conducted once by the two exchanges on the last Wednesday of every month.
IEX and PXIL sold 7,81,130 and 2,81,531 RECs respectively, totalling 10,62,661 RECs for the month of April in the auction conducted yesterday, as per the official data released by the exchanges.
Last year in April, PXIL and IEX had sold 2,93,420 and 4,53,353 RECs respectively, totalling 7,46,773 RECs, as per data available on both the exchanges.
IEX said in a statement that the major buyers were open access consumers and captive power producers, followed by distribution companies and utilities such as Tata Power, BEST and Torrent Power which came forward to fulfil their RPO compliance.
In the trading session held on April 25, 2018, IEX saw trade of 7,81,130 RECs comprising 6,44,151 solar and 1,36,979 non-solar RECs.
The trading session saw a 72 per cent increase over April 2017 when 4.53 lakh RECs were traded, comprising 88,533 solar and 3,64,820 non-solar RECs, it said, adding that a total of 884 participants traded in the trading session yesterday.
PXIL said,”Nearly, 2.81 lacs RECs were cleared at PXIL leading to market share of 26 per cent and clearing ratio of 31 per cent.”