Demand for non-solar RECs in India climbs in Sep 2017

Demand for non-solar renewable energy certificates (RECs) in India has increased by 32% on a monthly basis, reaching 382,007 of sold units in September 2017.

No solar REC sales were registered last month, according to official data by the Renewable Energy Certificate Registry of India.

For several years RECs in India have been trading at floor prices as certificate supply is much greater than demand. From the start of April the Central Electricity Regulatory Commission approved new forbearance and floor prices for both types of certificates, which caused a drop in demand. REC generators approached local regulators and then the Supreme Court of India, which put a stay on REC trading and the new prices. Non-solar RECs trading was enabled in July 2017, while trading of solar RECs is still on hold.

According to a report by consultancy Mercom Capital Group from last week, the Supreme Court of India has extended to end-March 2018 the validity of solar and non-solar RECs that were set to expire between April 1, 2017 and March 31, 2018. The number of solar and non-solar RECs due to expire by the end of March 2018 stands at 352,814 units and 913,171 units, respectively.

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, sold to entities that are obliged to use a certain percentage of renewable power.

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