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The REC trading for the month of June 2011 took place on 29th June. Indian Energy Exchange (IEX) once again saw the majority of trading happening whereas trading at  Power Exchange India Limited (PXIL) was subdued. The table below provides the summary of the trading at these two exchanges.

June 2011 Non-solar REC Solar REC
Total Buy Bids Total Sell Bids Trade Volume Purchase Price/REC No. of Participants Total Buy Bids Total Sell Bids Trade Volume Purchase Price No. of Participants
IEX 72002 21331 15902 Rs.1505 10 0 0 0
PXIL 10000 3183 483 Rs.1500 Not available 0 0 0
Total 82002 24514 16385

The National Load Dispatch Centre(NLDC) had issued a total of 26,886 non-Solar RECs in June. This took the total available non-solar RECs to 41,105. However, only about 60% of it(24,515) was available for sell bidding. Out of this, only 16,385 was actually traded at the exchanges.

There are some interesting comparisons to the trading that happened in the previous month(May 2011)

–  In May, the buy bids were less than the sell bids(18502 vs 20465). However, in June the buy bids far outstripped the sell bids(82002 vs 24514).

– Interestingly, despite the higher demand for the non-solar RECs, the purchase price was very close to the floor price.

– Despite an increase in the sell bids in June compared to May, the traded volume was lesser in June(18502 in May vs 16385 in June).

– As usual, there were no solar RECs that were available for trading since the NLDC has not yet issued any Solar REC.

According to IEX, some of the major participants in the trading session were

–  Knowledge Infrastructure Systems Private Limited

–  Manikaran Power Limited

–  Reliance Energy Trading Limited (RETL)

–  PTC India Ltd

–  REConnect Energy Solutions Private Ltd

–  Shree Cement Limited

Another interesting point IEX made was that many companies are keen on purchasing RECs voluntarily as part of their CSR activities. This bodes well for the Renewable energy generators by way of increased demand for the RECs.

Conclusion

The trading in June 2011 was very interesting for the fact that despite high demand, not all the sellers wanted to sell their RECs. It is obvious that the Sellers are willing to wait but not ready to accept a lower price realization. It will be very interesting to see how the dynamics of trading changes during the next trading session – on 27th July 2011.

PS: The details of the trading are available below.

  1. IEX – http://www.iexindia.com/IEXPower/Uploads/PressRelease/2011/June/IEX%20REC%2029th%20June.pdf
  2. PXIL – http://www.powerexindia.com/PXIL/rec.aspx