REC Trade Results – June 2015

The June trade session remained below expectations compared to May’15 month performance. However, if we compare the performance with Jun’14, the response was still far better. After the announcement of an important judgment by Supreme Court, the market looks upbeat and we can expect better demand in upcoming trade sessions.

Analysis of Trading:

Non-Solar – Total 161,845 RECs were cleared in this trading session. IEX and PXIL had a clearing ratio of 1.6% and 0.84% respectively. Total RECs redeemed this month was approx. 1 Lakh RECs lower w.r.t May’15.

Solar - RECs redeemed this month remained at 23,648 RECs. The clearing ratio was 1.4% and 0.17% in IEX and PXIL respectively. Solar REC traded this month were approximately 60 (sixty) thousand lower w.r.t to May trading session.

The REC trade results in the FY 2015-16 are summarized below for your reference.

REC Trade Results May 2015 – A Significant jump after Supreme Court judgment

We are pleased to share the Result of REC trading for the month of April-15.

In May’s trading session, 256,579 Non Solar and 83,189 Solar REC’s were traded through Power Exchange (a total of 339,768 REC’s), which was more than 4 times the traded volume in April.

The significant jump appears to a direct result of the Supreme Court judgment. The SC gave its judgment upholding the applicability of RPO on open access and captive consumers. The judgment is expected to have far-reaching impact as stay on RPO in many states will become redundant. It is also expected that SERC will take a more stringent approach to RPO enforcement.

 Analysis of Trading:-

 Non Solar - Total of 2.5 Lakh REC’s were cleared in this trading session. IEX and PXIL had a clearing ratio of 3.6% and 0.4%. Non Solar REC’s traded were approx.3.5 time’s higher w.r.t previous month.

Solar - REC’s redeemed this month were 83 Thousand, which were an 8-fold increase in number w.r.t. previous month. The clearing ratio was 5.51% and 0.89% in IEX and PXIL respectively. Demand for solar REC’s significantly improved this month.

The REC trade results in the FY 2014-15 is summarized below for your reference.

Non-Solar

Solar

Media Coverage – The Hindu Business Line

BY: Team REConnect

REC Trade Results April 2015

We are pleased to share the Result of REC trading for the month of April-15.

  • Solar RECs – Overall market clearance remained poor this time, with very low demand at both exchanges. Demand saw a dip from 68,982 last month to 8,522 this time, and this was expected in the first month trading of FY 2015-16. Market clearing ratio was very low, 0.68% in IEX and 0.23% in PXIL, with overall clearing ratio standing at 0.48% compared to 0.54% during April-14.
  • Non Solar REC market expectedly dipped from 654,985 last month to a very low figure of 55,612 RECs this month. The clearing ratio was good relatively better on IEX, but the overall market clearing ration of 0.52% stood well below 1.4% during April-2014.

The REC trade results in the FY 2014-15 is summarized below for your reference.

Non-Solar

Solar

 

Team REConnect

REC Trade Results – January 2015

We are pleased to share the Result of REC trading for the month of JAN-15.

  • Solar RECs – Overall market clearance remained low at PXIL in Solar whereas IEX reflected a good clearance ratio in Solar Market. Steep hike in demand for Solar at IEX can be attributed to reduced price of Solar RECs.
  • Non Solar REC market showed some signs of improvement with total 537,009 Non-Solar RECs getting cleared in today’s trade session.
    • While the demand looks improving owing to compliance year end approaching, hon’ble GERC(Gujarat Electricity Regulatory Commission) showed leniency on DISCOMs in Gujarat to adjust surplus solar RECs with non-solar RECs and also allowed reduction in total RPO targets for FY13-14. Detailed analysis can be read here.

Detailed trade results are tabled below for your kind reference.

Non-Solar RECs

Solar RECs

REConnect Energy is the market leader in the REC Market in India, with 36% market share and a portfolio of over 3 GW RE. We have been recently acknowledged with the REC Trader of the Year 2014.

Team REConnect

REC Trading October 2014 Results

REC trading session of Oct -14 was conducted on 29th Oct 2014.  Below is a summary of the result:- The Total closing balance for the October Trading session was around 11 Million RECs. The RECs inventory is piling up and increasing per month by around 8%, which if seen from the demand point of view is more than the total RECs cleared in the current financial year. In a recent proposal by CERC, the REC prices are expected to reduce to half of existing Floor and Forbearance price.

Non Solar REC The demand for Non Solar RECs stood at 74 thousand RECs. The Total Transaction was close to around 111 Million INR. The market was optimistic for Non Solar RECs. The RECs traded at their floor price of INR 1500.

Solar REC The demand for Solar RECs took a hit in this trading session as it stagnated to 379 RECs. Demand was lowest in the history of the Solar RECs. The Total Supply grew by 22% from the previous month  The Total Solar REC market transaction stood at around 12 Million INR. The Solar RECs Traded at floor Price of 9300 INR.

Contributed By: Cigil

REC Trading Report August-2014

REC trading session of August-14 was conducted on 27th August 2014.  Below is a summary of the result:-

Demand continues to be lack-lusture. Overall demand was 50681 for non-solar RECs, and 1163 solar RECs. Overall market clearing ratio for Non-solar RECs was 0.58%, and for Solar RECs was 0.35%. Summary is given below in the table below.

 

  • Non Solar REC:

Though the Total RECs redeemed this month increased over previous month, it was due to poor demand in July. The demand picked up by 60% from the month of July. The supply rose marginally by 5% w.r.t July. Non Solar price remained at 1500 INR (Floor Price).

Clearing ratios at IEX were 0.40% and PXIL were 0.73%.

 

 

  • Solar REC:

Demand fell significantly over previous month. However, demand was exceptional last month due to purchase by a Discom.. The Total supply grew by 15% with respect to July. Only 1163 RECs were traded this month which was next to lowest as of in this year.

Clearing ratios at IEX were 0.24% and PXIL were 0.43%.

 

Contributed By: Cigil & Vibhav Nuwal

 

REC Trading Report July-2014

REC trading session of July-14 was conducted on 30th July 2014.  Below is a summary of the result:-

The total transaction value of non-Solar RECs reached 47.7 INR million and for Solar RECs was 61.5 INR million. The closing balance of RECs showed a whopping increase of 1.3 million in Non Solar RECs and 0.05 million in Solar RECs. The demand in PXIL fared better in PXIL than IEX for Solar this month. The clearing ratio for PXIL in Solar was 5.5 % whereas for IEX it showed 0.28%.

 Non Solar REC

The demand was to the lower side as Total RECs issued were 1.38 million whereas Total Redeemed was 31809 RECs. The demand took a dive by 77% as compared to the month of June. The supply rose by a whopping margin of 235% as compared to June. Non Solar price remained at 1500 INR (Floor Price). This month showed the highest number of issuance of RECs for the financial year. More insight can be seen in the graphical chart below.

 

 

Solar REC

Total RECs issued this month was 55545 whereas the total redeemed was 6633. It rose by 301% w.r.t June whereas, supply shot up by 23%w.r.t.  June session. The solar demand tripled as compared to previous month.  More details can be seen in the graph.

 

Market Clearing Percentage

 

Credits by: Bloomberg NEF

Contributed By: Cigil

Buying power from Exchanges economically viable for Captive Plants

According to an article in Business Standard, captive power plants have resorted to buying power from power exchanges than generating by themselves. This behavioural change  of power procurement has been attributed to two main reasons :

1. Unavailability of domestic coal.

2. Low spot market prices discovered at exchanges owing to fall in demand.

Energy intensive industries – Cement, fertilizer etc. dependent on captive power production, have been using these low prices to their advantage.

The article has quoted a case of RSWM company of LNJ Bhilwara Group. The company generates power at an average cost of 4.2 Rs per unit (including coal cost and transmission losses). Due to present fall in spot market electricity prices, the company has been buying power at a cheaper rate of around Rs. 3 per unit. The company has also increased monthly power procurement from exchanges this fiscal.

As per IEX, the greater participation from captive consumers at exchanges has triggered higher volumes, greater competition and robust price discovery in short-term power market.

REC Trading Report – April 2013

Non Solar RECs

As April is the first month of the compliance year FY 13-14 a low demand situation was expected in this month’s trading session. Out of 18.9 lakh RECs which were put for sale only 44,459 RECs were purchased by the obligated entities.The about 93% of the total available RECs participated in the trade session.

The market clearing price was Rs.1500/REC at both IEX and PXIL which will remain the same in the coming months also as long as the oversupply situation will continue to prevail.

Solar RECs

The demand of solar RECs was higher than the supply. Buy bid was 3,522 and the sell bid was 3,077 out of which 2,217 got redeemed. The number of solar projects is continuously increasing under the REC scheme which provide a good amount solar RECs in the coming months.

The price at IEX was Rs.12, 206/REC and at PXIL it was Rs.12, 000/REC.

For information on previous months trading, please visit -March 2013 Trading Report

 

 

 

REC Trading Report – February 2013

Non-solar RECs

Demand decreased to 153,000 RECs (down 21% from Jan 2013) this trading session. The compliance period for this financial year will end in March 2013, leaving only one more trading session to go. Given that, the overall demand remains very disappointing. As we have mentioned earlier, till stronger enforcement kicks-in, demand is likely to remain lackluster.

Over 17,42,000 RECs were bid for sale (no change from last month). The significant oversupply situation continues to persist, despite the increase in demand.

3.5 lakh RECs were not bid for sale in the trading session. This represented 17% of the total available RECs.

Prices remain at the floor price (Rs 1,500/ REC) for the seventh consecutive month. Clearing ratio on IEX was 3.3% and on PXIL was 48.7%.

Solar RECs

The situation is more cheerful in the solar REC market.

Demand reduced to 6,777 from the high of 42,000+ last month. Last month saw a significant rise in demand as the compliance year comes to a close. However, given the small capacity in the solar REC market at present, demand remains significantly higher than supply.

Supply of solar RECs was at 2,700 (down 23% from January; possibly due to lower issuances in February – in January 3,300 RECs were issued while only 1,900 were issued in February).

Price remained constant at IEX at Rs 12,500 while it increased to Rs 13,000 on PXIL.

 

See these results in our dynamic market tracker (Beta version)

 

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