Compared to REC Trading for last month, this month saw a larger level of participation from buyers in REC market. For example, in this trade session, IEX witnessed 72,002 RECs* from buy side whereas, PXIL saw demand of 10,000 RECs. There are few interesting cues that this trade session has revealed. These are summarized below.
- Out of 41,005 RECs issued, only 24,514 (60%) RECs participated in this trade session (IEX+PXIL). Poor price realization in last two trade session could have been the reason for this.
- Of 24,514 RECs that were available for sale (IEX+PXIL), only 16,385 (67%) RECs got sold that too in a situation when total buy bids for RECs were 82,002 (almost 3.5 times)!! This clearly reflects that REC sellers are now expecting better revenue realization from RECs and want to experiment the power of banking facility in REC.
may rise and would naturally try to bank RECs if good REC prices are not realized.
* – At present only Non-Solar RECs are available in the market. No Solar RECs have been issued so far. Hence, word REC shall be understood as Non-Solar REC unless explicitly specified.