CERC extends expiry date for RECs due to expire

The CERC had issued an order extending the validity of Renewable Energy Certificates (REC) which were to expire between 15th May 2018 – 30th October 2018, up to 30th October 2018. There has now been an extension in the expiry of these RECs till 30th March 2019. A summary of the RECs likely to expire between 31st October 2018 to 31st October 2019.

Since the past year, the shelf life of the RECs has surpassed its expiry life of one year due to high supply but limited demand. Only post-November 2017 there has been a generous market realization of RECs (both solar and non-solar). Des[ite of this and the lack of enforcement there was a petition filed to extend the expiry of the RECs.

From the above inventory, it is evident that 1,83,999 RECs which have been issued prior to 01.04.2017 are due to expire within the next six months. This includes 38,651 Solar RECs and 1,45,348 Non Solar RECs. Hence the Commission is of the view that there is a need to extend the validity of RECs which are due to expire up to 31.03.2019.

The Commission in exercise of Power under Regulation 15 of REC Regulations has extended the validity of RECs which are due to expire between 31st October 2018 and 31st March 2019 up to 30th April 2019. Accordingly, RECs which are due to expire between 31st October 2018 and 31st March 2019 will remain valid up to 30th April 2019.

 

REC trade result – October 2018

This month’s trading saw good participation from the market due to good price realization in non-solar RECs and increased demand for solar REC in the last few months.

Non-Solar: The shortage of Non-solar RECs continues in the current session of October 2018. This session the RECs were traded at the price of INR 1201 at PXIL (16.73% above the base price) and INR 1251 at IEX (20.06% above the floor price). A total of 4,27,305 RECs were traded in this session leaving an inventory of 18,83,673 Non-Solar RECs. (However, a significant portion of these do not participate in trading as they are owned by Discom’s or are for self retention)

Solar: Total number of solar RECs traded in this session was 2,75,951 (82.28% decrease from the last months’ trade). The clearing ratio was 100% at PXIL & 100% at IEX respectively (w.r.t floor price). RECs traded at the floor price, i.e. INR 1000 at PXIL and at Rs 1,001 at IEX.

The overall trade volume (7,03,256 RECs) decreased by almost 170% from the last months’ trade volume (19,03,638  RECs). This was due to very high demand for solar RECs last month.

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