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REC Trade Results – June 2018

Considering that this was the third trading session of the new financial year, in the month of June both Solar and Non-solar RECs saw a robust trade. Due to the shortage of Non-Solar RECs, and excessive demand, the prices for Non-Solar RECs soared 15% above floor price (Rs. 1000/REC). The Solar RECs, on the other hand, traded at the floor price of Rs. 1000/REC with a very robust demand trend. Given the shortage of Non-Solar RECs and continuously rising demand, we may soon see prices of Non-Solar RECs rallying up much faster than anticipated earlier during the beginning of the FY19.
Analysis of Trading:
Non-Solar – The Non-solar RECs inventory was not completely exhausted in the June 2018 trading session with clearing ratio for non-solar being at 100% at IEX and PXIL respectively (means all the bids below market clearing price got cleared at both power exchanges). A total of 303,828 RECs were traded, despite the demand is as high as 1,111,235 (YoY decrease of 43.56% as compared to 538,371 RECs traded April 2017). The RECs were traded at the price of Rs 1,050/REC at PXIL (5% above floor price), and at Rs 1,150/REC (15% above floor price) at IEX.
Solar – In case of solar a  total of 592,401 RECs were traded in the current month (a YoY Increase of 184% as compared to April 2017). The clearing ratio for solar stood decent at 11.40% and 15.70% in IEX and PXIL respectively.

The below graph depicts the Clearing ratio trend of Non-solar and Solar. In case of Non-solar, the clearance was 72.38% at IEX and 91.61% at PXIL and for solar, the clearance was at 11.4% and 15.7% in IEX and PXIL respectively.