REC Trading Report – July 2013

REC Trading on 31st July 2013 continued to follow the lackluster market scenario. Both non-solar credits (for 11th consecutive month) and solar credits (for 2nd consecutive time) traded at respective floor prices. As per the REC Registry, out of total 2892473 available RECs in the market only 163431 got redeemed, which exhibits a poor 5.6 % only (although the redeemed figure was able to cross the 1 Lac mark in contrast to corresponding figures of last 3 months).

Non Solar RECs:

Total supply of RECs at both exchanges was 2772198, which is around 16 % higher than the supply in June 2013.  Total demand, however was encouraging showing an increase of 122.6 % as compared to demand in previous month. Demand rose by a meager 36% only in June 2013 in contrast to May 2013. This manifests that first month of Q2 FY14 is precursor to a benign market scene going forward. The market clearing volume crossed the 1.5 lac milestone.

In the charts above, it is evident that the yawning gap between supply and demand is usurious and is going to continue the trend, thanks to weak enforcement of RPO.

 Fig 1: Non-Solar REC Trading Stats – July 2013

 Fig 2 : Non-Solar REC Market Clearing Price – July 2013

Solar RECs:

Solar REC Markets have also continued to perform poorly. This is a straight second month in which this market has seen Solar RECs being traded at floor price, since May’12. Supply has, for the very first time, reached a flouting 5-digit figure of 21680 (total at both exchanges), which is an increase of 265 % in comparison with corresponding June 2013 data. Demand continued to disappoint at less than 10 % of the supply. Details of the previous months scenario can be found in the charts below:

Fig 3 : Solar REC Trade Stats – July 2013

Fig 4: Solar REC Market Clearing Price – July 2013

For previous months trading report click here.