REC Trade Report – November 2013
November 28th, 2013
November 2013 REC trading witnessed an increase in volumes. The spike in demand is a sign that RPO
enforcement is taking its gradual effect and some states are ensuring buyers participation, thereby keeping the
market upbeat. For non-solar RECs, the demand increased by 105% w.r.t last month. This indicates, there is
increased momentum towards complying with RPO by end of FY 2013-14. With stricter RPO compliance
regimes mandated in states like Punjab, Uttarakhand, Maharashtra and Union Territories (recently), clearing
ratios can be expected to go up in forthcoming trading session. More insights can be drawn from fig.1.
Fig1: Non-Solar trade stats – November 2013
Non-solar RECs – The supply this month had a flip side. It was reduced to 6.5 % (almost half) as compared last
trading session. The inventory at the registry was at 45 Lac RECs owing to reduced issuance (less by 1 lac
RECs as compared to last month).
Fig 2: Non-Solar Market Clearing Price – November 2013
33rd trading session offered an alarming signal to the solar REC market space. As compared to previous trading
sessions, all the parameters namely demand, supply and cleared volumes plummeted. Demand for solar RECs
fell by 20.56 % and at the same time, supply was down by 9.71 %. As per a recent report by CEA, as on
31.07.2013, solar generation capacity (above 1 MW) was only 6.79% (1650 MW) in RE rich states of
Rajasthan, Gujarat, Maharashtra, Karnataka, and Tamil Nadu out of total RE capacity of 24265 MW in these
states. This shows the lackluster performance of solar industry in the country which in-turn has resulted into
poor supply REC market. Only 2936 solar RECs were issued between 31.10.2013 and 28.11.2013 (Source:
Fig 3: Solar market trade stats – November 2013
Needless to say, the price remained at floor yet again with meager expectations of an upside.
Fig 4: Solar Market clearing price - November 2013
More data can be found in the table below: