October’s Solar REC Trading Sees Record High Price of ₹2,400

Traded volumes for solar RECs saw an increase of around 20% on a month-on-month basis


In October’s renewable energy certificate (REC) trading session, there was an increase in the number of solar and non-solar RECs that were traded compared with the trading activity recorded in September.

A total of 99,580 solar RECs were traded cumulatively on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). The RECs were traded at ₹2,400 (~$33.9)/REC, which is a record high price on both the trading platforms.

In September 2019, the RECs were traded at ₹2,250 (~$31.95)/REC and ₹2,200 ($31.24)/REC on the IEX and PXIL respectively.

On the price increase, a representative from the IEX told Mercom, “The increase in the price is due to supply-side constraint as usual. Since there is no ceiling on REC prices, we are witnessing this month over month price increment”.

Buyers in the markets are getting apprehensive about REC prices and would like to see the supply side situation improve.

Solar REC MArket Trading

The number of solar RECs traded in October 2019 was up by almost 21% compared to trading activity in September 2019. Prices of solar REC traded in September 2019 were also higher by around 6%-9%, depending on the exchange, on a month-on-month (MoM) basis.

On the IEX and PXIL, a total of 566,330 non-solar RECs issued after April 1, 2017, were traded. On the IEX, 388,821 non-solar RECs were sold at the rate of ₹1,650 (~$23.29)/REC. This was ₹150 (~$2.12)/REC more than the rate at which it was traded on the IEX in the previous month.

On the PXIL, 177,509 non-solar RECs were traded at a rate of ₹1,650/REC, a decrease of ₹130 (~$1.80)/REC when compared with the prices of these RECs in September 2019.

Non-Solar REC Market Trading

Sale bids for solar as well as non-solar RECs continue to remain low. In June 2019, Mercom had reported that India’s REC inventory was almost exhausted.

Recently, the Karnataka Electricity Regulatory Commission (KERC) issued a draft amendment to its guidelines for the procurement of energy through renewable sources. The amendments will allow the inclusion of distribution licensees to avail accreditation under the renewable energy certificate mechanism and impose a cap on average pooled power purchase cost (APPPC).

Recently, the Central Electricity Regulatory Commission (CERC) ordered the IEX to give wide publicity to GTAM contracts by uploading it on its website and invite comments from all stakeholders and the public.

Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.