REC TRADE RESULTS OCTOBER 2017

Non-solar demand was significantly higher than in October 2016, and also higher than last month. In total 4.87 lakh RECs were traded (90.78% higher than October 2016, and 27.51% higher than in September 2017), and clearing ratios on IEX and PXIL were 4.5% and 3.3% respectively. Solar RECs did not trade due to a stay imposed by the Supreme Court.

 

TRADE RESULTS OF ESCERTS FOR WEEK 5

The fifth trading session of ESCerts took place today.

In total, there was a demand for 42,271 ESCerts, a decrease of4.28% from last week. This demand was against a total supply of 3,49,806 ESCerts (increase of 8.29% since last week).  Market clearing price was determined at Rs 600/ ESCert (compared to Rs 800 last week), with 41,455 ESCerts sold (volume traded increased by a paltry 2.2%; the total traded value was Rs 2.48 crore – a reduction of 22.5%).

Source: IEX

TRADE RESULTS OF ESCERTS FOR WEEK 4

The fourth trading session of ESCerts took place today.

 

In total, there was a demand for 40,538 ESCerts, a decrease of 37.11% from last week. This demand was against a total supply of 3,81,443 ESCerts (increase of 9% since last week). Market clearing price was determined at Rs 800/ ESCert (compared to Rs 1,000 last week), with 40,148 ESCerts sold (volume traded reduced by 25% ; the total traded value was Rs 3.21 crore).

 
In today’s trade, the total demand was for 40,538 while total cleared volume was 40138 ESCerts. Only 0.97% demand was below the MCP. At Rs 800/ ESCert, the market seems to have found an equilibrium price, at least for the short term.

TRADE RESULTS OF ESCERTS FOR WEEK 3

The third trading session of ESCerts took place today.

In total, there was a demand for 64,459 ESCerts, an increase of 24.14% from last week. This demand was against a total supply of 3,48,587 ESCerts. Market clearing price was determined at Rs 1,000/ ESCert (compared to Rs 1,200 last week), with 43,078 ESCerts sold (almost twice the volume was cleared; the total traded value was Rs 4.30 crore).

WIND TARIFF HITS A NEW LOW

In the second auction conducted by SECI for 1 GW wind capacity on 4th October, the wind tariff reached an all time low of Rs 2.64 per unit. This tariff was quoted by ReNew Power for 250 MW capacity. This is the lowest wind energy tariff determined in the country after the wind auction conducted by TANGEDCO where a price of Rs 3.42 was determined. The following graph determines the decrease in wind tariffs determined through reverse bidding in 2017:


Article covering the same can be accessed here.

 

 

TRADE RESULTS OF ESCERTS FOR WEEK 2

The second trading session of ESCerts took place today.

 

In total, there was a demand for 51,925 ESCerts which was higher than the demand last week by 2.01%. This demand was against a total supply of 2,36,031 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with 23,295 ESCerts sold (more than twice the volume was cleared; the total traded value was Rs 2.79 crore).

 
Source: IEX analysis

Since a price benchmark was set during the first trading session last week, a lot more supply was bid at a lower price point. As a result, although the overall demand and supply remained the similar, the cleared volume was nearly double that of last week.

VALIDITY OF RECS WHICH WERE ABOUT TO GET EXPIRED BETWEEN OCTOBER ’17 AND MARCH ’18 GETS EXTENDED BY SIX MONTHS

The Central Electricity Regulatory Commission (CERC) has in its order dated 29/08/2017, declared that those Renewable Energy Certificates (RECs) which were expiring between 1st October 2017 and 31st March 2018 are now going to remain valid till 31st March 2018. In its order dated 30th March 2017, the commission had extended the validity of RECs which were going to expire between 1st April 2017 to 30th September 2017 till 31st March 2018.

 

The order  can be accessed here.

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