Trade in renewable energy certificates (RECs) soared in October, compared to September. The total number of certificates traded on the Power Exchange India platform in October stood at 91,440 (971 solar and 90,469 non-solar), 41 per cent the total certificates traded. In September, 25,507 RECs were traded (425 solar and 25,082 non-solar).
The growth in the REC market indicates obligated entities are willing to fulfill part of their renewable purchase obligation by purchasing RECs at Power Exchange India.
“The increased participation in REC trade by obligated entities like state distribution licensees is a welcome development. This would provide a much-needed fillip to the market, encourage renewable energy generators and ensure India’s march towards a greener environment,” said Rupa Devi Singh, managing director and chief executive, Power Exchange India.
The REC trade mechanism was introduced under the Electricity Act, 2003, and the National Action Plan on Climate Change, 2008, to address the mismatch between the availability of renewable energy sources and compliance with renewable purchase obligations. Under this mechanism, entities unable to meet obligation targets due to insufficient generation of renewable energy can purchase RECs on power exchanges.