REC Trading Report – October 2013

Non-Solar RECs

Overall, Non-solar demand increased more than three-fold compared to last month (150,640 vs 49,831 in September 2013). As a result, clearing ratios on both exchanges improved. The uptick in demand is likely a factor of timing (most compliance takes places in the second half of the year), and ongoing enforcement efforts at ApTel and at state ERCs. Due to both these factors, demand is expected to improve in the coming months.

Fig 1: Non-Solar REC Trade Stats – October 2013

Fig 2 : Non-Solar Market Clearing Plant – October 2013

Close to 42 lakh RECs were available in the market. Of this, approx.. 39 lakh RECs were bid for trading. Clearing rations at IEX and PXIL were 4.2% and 3.64% respectively (previous month – 1.65% and 1.03%)

Clearing price remained at floor price (Rs 1,500/ REC)

Solar RECs

Solar REC demand improved marginally from 6,712 in Sept to 9,275 this month (38% increase). Solar RECs demand has been steadily rising over the last several months, and is expected to continue to do so.

Total available RECs were in excess of 67,000 RECs. This is also expected to increase in the coming months as several projects were commissioned towards the end of September.

Fig 3 : Solar REC Trade Stats – October 2013

Fig 4 : Solar Market Clearing Price – October 2013

Clearing price remained at floor price (Rs 9,300/ REC)

	IEX	PXIL	Total
Buy – Non Solar	98,921	51,719	150,640
Sell – Non Solar	24,47,648	14,38,712	38,86,360
Cleared volume – Non solar	98,921	51,719	150,640
Clearing Ratio – Non Solar	4.2%	3.64%
Buy – Solar	6,548	2,709	9,257
Sell – Solar	48,515	19,439	67,954
Cleared volume –  Solar	6,548	2,709	9,257
Clearing Ratio – Solar	13.5%	14%
Market Clearing Price	Rs 9,300 – Solar Rs 1,500 – Non Solar	Rs 9,300 – Solar Rs 1,500 – Non Solar

Coverage of the trading session – Bloomberg