Prospects dark for renewable energy market

Renewable energy (RE), often talked in glorious terms at seminars and conferences, faces dim prospects in reality, if trading details of power exchanges are any indicatio

n.

Statistics gleaned from the two power exchanges – Indian Energy Exchange Ltd (IEX) and Power Exchange India Ltd (PXIL) – show that supply of renewable energy certificates (RECs) outstripped demand by almost five times, indicating few buyers.

RECs are certificates awarded (in dematerialised format) to those who generate energy from renewable sources like wind, biomass, hydro and solar and sell it to obligated entities like power distribution companies and open access consumers. One REC is equal to 1MWh of energy.

On October 31, 10.12 lakh RECs were offered for sale in the non-solar category at the two exchanges, but only 2.22 lakh were bought, at the floor price of Rs 1500 per REC fixed by the Central Electricity Regulatory Commission.  

REC Trading Statistics - Oct, 2012

Bids    Non-solar    Solar    Total
Sell bids    1012660    1876    1014536
Buy bids    222700    3363    226063
Cleared    222700    1791    224491
Sources: PXIL, IEX

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