Solar REC Price Spikes to a Record ₹2,250 in September 2019

The solar REC market saw an increase of approximately 20% in traded volumes on a month on month basis

October 3, 2019


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

A total of 82,403 solar RECs were traded on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) together. The RECs were traded at ₹2,250 (~$31.95)/REC and ₹2,200 ($31.24)/REC on the IEX and PXIL respectively. In August, the solar RECs were traded at ₹2,000 (~$28.23)/REC and ₹2,100 ($29.29)/REC on the PXIL and IEX respectively.

The number of solar RECs traded in September 2019 was up by almost 20% when compared to the ones traded on the IEX and PXIL in August 2019. Prices of solar REC traded in September 2019 were also higher by 5%-7%, depending on the exchange, on a month on month (MoM) basis.

Solar REC Market Trading

A total of 125,163 non-solar RECs issued before April 1, 2017, were traded on the PXIL. These were traded on the PXIL at a price of ₹1,500 (~$21.17)/REC. There weren’t any cleared volumes for such RECs on the IEX.

On the IEX and PXIL, a total of 438,561 non-solar RECs issued after April 1, 2017, were sold. On the IEX, 345,866 non-solar RECs were sold at the rate of ₹1,500 (~$21.30)/REC. This was ₹250 (~$3.50)/REC less than the rate at which it was traded on the IEX in the previous month. On the PXIL, 92,695 non-solar RECs were sold at a rate of ₹1,780 (~$25.04)/REC; an increase of ₹280 (~$3.94)/REC when compared the prices of these RECs in August 2019.

Non-Solar REC Market Trading

A representative from IEX told Mercom, “The rise in prices of solar RECs can be attributed to higher demand from buyers. This remains to be a sellers’ market. ”

In June 2019, Mercom 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).

Moreover, 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.