REC Trading Update – August 2011
In August's REC trade, both prices and demand volume increased significantly from last month. REC demand last month was about 96,000, while it almost doubled to over 183,000 in August. This is perhaps the most significant indicator for the REC markets,
TNERC's Regulation on REC/RPO
Honorable Tamil Nadu Electricity Regulatory Commission (TNERC) declared its much awaited RPO/REC amendment regulation. Following are the key highlights of the regulation: RPO Reduced from 14% to 9% (8.95 Non-Solar + 0.05% Solar) for FY 2011-12 Eligibility Criteria for RE CPP as per
REC Trading Update – July 2011
REC Trading has been picking up gradually. Both the volumes traded and the price showed some improvement over the last month – approximately 18,500 Non-solar RECs were traded this month, as compared to 16,000 in June. Price also showed marginal improvement,
Order on APPC of HPSEB Ltd for FY 2011-12
The revised Pooled Cost of Power Purchase has been worked out as Rs. 2.24 per unit for the FY 2011-12. The order on APPC of HPSEB Ltd for FY 2011-12 is available here.
PSERC notifies final regulation on RPO
Honorable Punjab State Electricity Regulatory Commission (PSERC) notified final regulation on Renewable Purchase Obligation and its compliance. PSERC specified the RPO percentage of 2.37% (Non Solar – 2.34 % and Solar – 0.03 %) for current financial year 2011-2012. The
CERC to determine Floor & Forbearance Price of RECs post 2012
Central Electricity Regulatory Commission (CERC) has come out with a suo-motu order on determining new Floor and Forbearance price for REC (Solar & Non-Solar) for the period post 2012. The draft copy of the order and a notice for the
TNERC Proposes Amendment to RPO Regulation
The TNERC notified the draft amendment to the Renewable Purchase Obligation Regulation on 19th May, 2011. The draft resembles the CERC regulations except for few minor changes. The key highlights of the draft regulations are, Captive & Open Access Consumers have
RPO Compliance May be Required More Frequently
After the low trading volumes in April, we strongly advocated quarterly compliance in order to make the REC market functional. Now it has been reported that the CERC has been actively considering such a proposal (See Business Standard article here). An
Significant Jump in REC Trading Volume in May
Review of REC Trading – May 2011 After a slow start, REC Trading picked up this month. There was a significant increase in the volume – combined volumes on both exchanges was 18,500 RECs (representing 18.5 million units). This is
Lessons to learn from REC Trade in April-2011
India witnessed first ever trade of REC in March 2011 where 424 Non-Solar RECs got traded collectively through Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) at Market Clearing Price (MCP) of Rs. 3900/REC and Rs. 2225/REC respectively. Market got super excited seeing REC prices touching forbearance price at IEX. However, the market got little surprise as well as shock in the very next trade session that got executed in April-2011, in which buyers were hard to find at both the Power Exchanges (PXs). Based on its existing strong hold in the market, IEX managed to get 260 Non-Solar RECs from buy side whereas their counterpart – PXIL could not get a single bid from REC buyers! This came as a little surprise to us (REConnect) as well as the market. We were expecting that the market would see a strong dip in the price due to following factors:
- Most of the distribution companies & obligated entities might still be busy settling their financial accounts