REC trade result – December 2018

The december trading session saw a good price discovery for both solar & non-solar RECs. The market saw a significant price hike in solar as compared to last month. The demand for both solar & non-solar remained consistent while the supply remained limited. As we approach the year-end, the obligated entities are in the process to comply with their obligations and hence the higher demand in order to not face any penalties for non-compliance. However, the highlight of this month’s trade was that solar crossed the floor price of INR 1,000 and reached at INR 1500 at PXIL and INR 1450 at IEX.
Non-Solar: This session the RECs were traded at the price of INR 1255 at PXIL (25.5% above the floor price) and INR 1320 at IEX (32% above the floor price). A total of 3,82,400 RECs were traded in this session leaving an inventory of 21,52,097 Non-Solar RECs. (However, a significant portion of these do not participate in trading as they would either be owned by Discom’s or are for self-retention).
Solar: Total number of solar RECs traded in this session was 1,77,247 (201% increase 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 1500 at PXIL (50% above the floor price) and at Rs 1450 at IEX (45% above the floor price).
The overall trade volume (5,59,647 RECs) increased by almost 10.65% from the last months’ trade volume (5,05,738 RECs).