Based on official information, a complete of two.29 lakh RECs have been traded on the Indian Power Alternate (IEX) in June, in comparison with 4.19 lakh in the identical month of 2019. Energy Alternate of India (PXIL) recorded gross sales of round 1.2 lakh RECs in June as in opposition to 2.79 lakh earlier.
IEX and PXIL are engaged in buying and selling of RECs and electrical energy. REC buying and selling is performed on the final Wednesday of each month. The IEX and PXIL information confirmed that RECs witnessed increased provide, with promote bids exceeding purchase bids. There have been purchase bids for over 2.29 lakh RECs in opposition to promote bids for over 8.48 lakh RECs in June this yr.
Equally, the availability was excessive at PXIL. There have been purchase bids for over 1.22 lakh RECs and promote bids for over 4.49 lakh models for the month. Total provide for RECs was excessive as the entire purchase bids at each energy exchanges was over 3.Four lakh models in opposition to promote bids of over 12.97 lakh models.
Underneath the renewable buy obligation (RPO), bulk purchasers like discoms, open entry shoppers and capacitive customers are required to purchase a sure proportion of RECs. They’ll purchase RECs from renewable power producers to fulfill the RPO norms. The proportion of renewable power for utilities is mounted by the central and state electrical energy regulatory commissions.
The REC mechanism is a market-based instrument to advertise renewable sources of power and improvement of market in electrical energy. It offers an alternate voluntary path to a generator to promote its electrical energy from renewable sources identical to typical electrical energy and supply the inexperienced attribute (RECs) individually to obligated entities to fulfil their RPO.