The Solar REC trading for the month of January 2013 concluded on 31th jan.
In contradiction to the trend of last few months, the opening month of
this year has posted strong gains in volume. The Solar REC cleared
volume is of 203 REC on PXIL and 2105 REC on IEX. This time REC trading
showcased an impressive growth of 126% growth over last month’s trading
session on IEX whereas on PXIL there is reduction of 26%. This can be
due to the fact that maximum trading is happened on IEX. Considering the
number of clearing volume that is maximum RECs are traded in IEX (90%)
so we will discuss further for IEX on
In total buy bids 40,138 this is 24 times as compare to the previous month. IEX extended their dominance in the REC trading market with 90% Solar RECs traded while PXIL saw trading of only 10% certificates. As pointed out earlier, the growing dominance could very likely make IEX the sole exchange in the REC market. But while trading only PXIL has shown growth of maximum clearing price of REC and that is by Rs 400 per REC (increase of 3.3%)whereas IEX shown as decrease of Rs 120 per REC(decrease of 1%)
Both IEX and PXIL cleared Solar RECs at a price of Rs. 12,500 per certificate. The number of participants in IEX has shown a tremendous growth of 100% for bidding of RECs.
Conclusion
This can be due to approaching the end of financial year. This is a clear indication that companies, now more than ever are trying to fulfil their RPO as the window to do so is starting to close (March 2012 being the final month to fulfil current obligations).
The growth in the solar REC buy bids shows the growing appetite for these specific RECs while there is virtually no supply for these certificates at this time (Buy bid 40,138 and sell bid 3356). Power producers looking to setup a solar PV plant under the REC route can virtually command any price that they want.
It is unlikely that project developers are going to face difficulties in getting their RECs sold in the near term as the demand continues to soar while the supply is unable to keep up, especially in the solar REC segment which has seen very low sale bids as compare to non-solar RECs.
Abbreviations
REC: Renewable Energy Certificate
RPO: Renewable Purchase Obligation
PV: Photovoltaic
IEX: Indian Energy Exchange
PXIL: Power Exchange of India Ltd
CV: Clearing Volume
MCP: Minimum Clearing Price
In total buy bids 40,138 this is 24 times as compare to the previous month. IEX extended their dominance in the REC trading market with 90% Solar RECs traded while PXIL saw trading of only 10% certificates. As pointed out earlier, the growing dominance could very likely make IEX the sole exchange in the REC market. But while trading only PXIL has shown growth of maximum clearing price of REC and that is by Rs 400 per REC (increase of 3.3%)whereas IEX shown as decrease of Rs 120 per REC(decrease of 1%)
Both IEX and PXIL cleared Solar RECs at a price of Rs. 12,500 per certificate. The number of participants in IEX has shown a tremendous growth of 100% for bidding of RECs.
This can be due to approaching the end of financial year. This is a clear indication that companies, now more than ever are trying to fulfil their RPO as the window to do so is starting to close (March 2012 being the final month to fulfil current obligations).
The growth in the solar REC buy bids shows the growing appetite for these specific RECs while there is virtually no supply for these certificates at this time (Buy bid 40,138 and sell bid 3356). Power producers looking to setup a solar PV plant under the REC route can virtually command any price that they want.
It is unlikely that project developers are going to face difficulties in getting their RECs sold in the near term as the demand continues to soar while the supply is unable to keep up, especially in the solar REC segment which has seen very low sale bids as compare to non-solar RECs.
Abbreviations
REC: Renewable Energy Certificate
RPO: Renewable Purchase Obligation
PV: Photovoltaic
IEX: Indian Energy Exchange
PXIL: Power Exchange of India Ltd
CV: Clearing Volume
MCP: Minimum Clearing Price
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