Renewables certificates demand in India rises in June

Demand for both solar and non-solar renewable energy certificates (RECs) in India jumped in June, which may be attributed to Uttarakhand’s move to strengthen enforcement of the Renewable Purchase Obligations (RPO).

Total of 51,015 solar RECs were sold last month, up from just 20,083 in May. Non-solar REC sales also grew to 417,426 sold certificates, as compared to 161,858 redeemed units in May.

Meanwhile, 57,757 new solar and 451,138 new non-solar renewable energy certificates were issued by Indian power producers. Trading prices for both remain at the minimum level defined by the government, because of the significant gap between supply and demand.

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. The weak RPO enforcement for years has been the reason for bottom-price trading of the certificates and a growing pile of unsold RECs.

However, on June 20, the Uttarakhand Electricity Regulatory Commission (UERC) directed all obligated entities to meet by July their RPO for the fiscal year that ended on March 30. There are hopes that more states would follow that example.

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