REC Trading Update – August 2011

In August’s REC trade, both prices and demand volume increased significantly from last month.

REC demand last month was about 96,000, while it almost doubled to over 183,000 in August. This is perhaps the most significant indicator for the REC markets, as it points to a strong expectation of RPO enforcement by market participants this year. Another important thing to note is that the demand in this month alone was more than the total RECs issued till date, which is approximately 124,000.With demand expected to increase significantly as we approach March 2012, the demand-supply gap is only expected to widen, particularly as more captive and open access generators join the market.

 

 

REC prices also increased sharply, mainly as a result of the large demand-supply gap (demand this month was 183,000, supply was 58,000). The clearing price at IEX was Rs 1,800/ REC, up from Rs 1,555/ REC in July. This represents an increase of about 16%. This upward trend can be expected to continue.

REC Trading Update – July 2011

REC Trading has been picking up gradually. Both the volumes traded and the price showed some improvement over the last month – approximately 18,500 Non-solar RECs were traded this month, as compared to 16,000 in June.

Price also showed marginal improvement, increasing to Rs 1,555 and 1,550 (IEX and PXIL) from Rs 1, 505 last month.

Its also important to note that RECs available in the market have now crossed 36,000. This is not due to lack of demand (demand was close to 96,000 RECs this month), clearly indicating that sellers are looking for better prices, and expect to get those later in the year, as compliance draws near.

No solar RECs were traded.

UPDATE ON HEARING ON PRICE AND TRADING OF SOLAR RECS IN APTEL

We attended the hearing at ApTel today. The court has dismissed all the petitions – implying that the CERC order remains as is. More details will be available once the final order is uploaded on the ApTel’s website (generally by end of day or tomorrow).
Since the stay on trading for Solar RECs was till the order of ApTel, it stands automatically vacated, and trading will resume from this month (unless a fresh stay is obtained by the generators).
We will provide a very detailed analysis of the order once it becomes available.

REConnect Newsletter Volume 52 (June 2015) – OPEN ACCESS

Dear Reader,

 We are please to present OPEN ACCESS – our monthly newsletter that covers important developments in the renewable energy markets. This month’s newsletter covers:

  • Detailed analysis of the 5th Amendment to REC regulations proposed by CERC. This amendment will have significant impact on renewable energy based CPPs and OA projects, and also on the market demand-supply situation down the road
  • Updates on regulatory changes from Gujarat, Telangana, MP, Mahasrashtra, JERC and Rajasthan
  • Analysis of the REC trading sessions in June. Demand was well below May trading volumes. However, the broad trend remains positive due to the SC order on RPO.

 The newsletter can also be downloaded by clicking here – or past newsletters from here.

We hope you enjoy reading the newsletter. Please send us comments and feedback.

 Regards,

 Team REConnect

REConnect Newsletter Volume 42 – OPEN ACCESS

Dear Reader,

We are pleased to present Open Access Vol 42 – our monthly newsletter covering RECs and regulatory and market developments in the renewable energy space.

 Key points covered in this newsletter are:

 1) Analysis of Karnataka’s solar policy

 2) Regulatory updates including important changes in RPO regualtions in Rajasthan, Order of JERC for enforecemnt of RPO including    imposition of penalty, and other regulatory updates

 3) Analysis of the most recent trading session of RECs and capacities in the REC mechanism

 Past newsletters can be accessd here – http://www.reconnectenergy.com/newsletter/past-newsletters/

For latest news and updates, please visit our blog at – http://reconnectenergy.com/blog/

 As always, we will love to hear your feedback on the newsletter.

– Team REConnect

REC Trading Report – May 2014

Demand and clearing ratios touched one of the lowest points in three years.

Non-solar RECs:

Demand in May was 29,255, compared to 79,354 in April (down 63% over April) and down 45% from May of last year. The last time demand was this low was in August 2011. Clearing ratios at both exchanges were approximately 0.45%. Closing inventory of RECs is in excess of 69.5 lakh.

Solar RECs: Demand improved marginally from 989 RECs last month to 2,120 RECs. As a result, clearing ratios improved as well – 0.26% in IEX and 4.8% on PXIL, albeit on very low demand compared to existing inventory. Inventory currently stands at over 2.1 lakh RECs.

The low demand is continuing despite penalty orders in Uttarakhand and Union Territories. It will be interesting to watch the approach that the regulators take in the next few months if the non-compliance continues despite orders from them.

To get details about previous months trading session – Click Here.

Our online market tracker tool can be accessed here.

REConnect Newsletter Volume 41 – OPEN ACCESS

Dear Reader,

We are pleased to present Open Access Vol. 41 – our monthly newsletter covering RECs and regulatory – market developments in the renewable energy space.

Key points covered in this newsletter are:

1) Our analysis on the likelihood of RPO enforcement in FY 2014-15.

2) Regulatory updates including KERC’s final APPC for FY14 & FY15 (interim) & JSERC order on declaration of Bokaro Steel Plant’s CPP as Cogeneration unit.

3) Analysis of the most recent trading session of RECs and capacities in the REC mechanism.

The newsletter is attached with this email and also can be found on our webpage – http://www.reconnectenergy.com/newsletter/past-newsletters/

We hope that you find the newsletter a useful read. Do provide us feedback.

Regards,

– Team REConnect

REConnect Newsletter Volume 40 – OPEN ACCESS

Dear Reader,

We are pleased to present Open Access Vol 40 – our monthly newsletter covering RECs and regulatory and market developments in the renewable energy space.

Key points covered in this newsletter are:

 1) Two important announcements – Infuse Ventures – a clean tech focused venture capital fund invested in REConnect Energy, and 2) The scheduling and forecasting team reached an important milestone of sending over 15,000 schedules till date. This milestone was achieved in a short span of 8 months.

 2) A detailed analysis of the REC markets in FY 2013-14

 3) Regulatory updates including important changes in RPO regualtions in Gujarat and Rajasthan

 4) Analysis of the most recent trading session of RECs and capacities in the REC mechanism

 The newsletter can also be downloaded by clicking here – or past newsletters from here.

 We hope you find the newsletter a useful read. Do provide us feedback.

 Regards,

– Team REConnect

REConnect Newsletter Volume 39 – OPEN ACCESS

We are pleased to present the 39th Volume of “OPEN ACCESS” – our monthly newsletter on REC Mechanism.

The present volume covers analysis on following main topics:

  • Detailed analysis of the bidding under JNNSM Phase 2 by solar industry export Shri Gopal Somani
  • Various regulatory updates including review of revised procedures for RECs accreditation, registration and issuance. Details about reterntion of RECs for own RPO fulfillment are also included.
  • REC trading analysis for February 2014.

To access the current volume (OPEN ACCESS Vol. 39) please Click Here

To read past volumes of our newsletter please follow this link.

We hope you will find this volume of OPEN-ACCESS an insightful read. As always, look forward to your feedback and continued support.

Regards,

Team REConnect

REConnect Newsletter Volume 38 – OPEN ACCESS

We are pleased to present the 38th Volume of “OPEN ACCESS” – our monthly newsletter on REC Mechanism. 

The present volume covers analysis on following main topics:

  • Details of landmark order from UERC for imposing penalty for non-compliance of RPO .
  • Analysis of draft of CERC RE tariff order.
  • Various regulatory updates including: ApTel’s order on TN SPO and CERC’s order on RRF mechanism
  • REC trading analysis for January 2014.

To access the current volume (OPEN ACCESS Vol. 38) please Click Here.

To read past volumes of our newsletter please follow this link.

We hope you will find this volume of OPEN-ACCESS an insightful read. As always, look forward to your feedback and continued support.

Regards,

Team REConnect

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