REC Market Trade Report - March 2016

With almost 7.10 lacs RECs traded in March’16 REC Session at IEX held on 30th March, 2016, the traded volume surged over 2.5 times over Feb’16. This is the second highest trade so far after December’15 when 8.66 lacs RECs were traded. With Government of India placing huge emphasis on RPO compliance, obligated entities including Captive Power consumers, Open Access consumers and Discoms have come forward to comply with their RP Obligation. The key details of the trading session are as below: In the non-solar segment, total buy bids of 6,00,940 were received against total sell bids of 78,45,782 and all bids were cleared at floor price of Rs 1,500 per REC. In the solar segment, total buy bids of 1,08,797 were received against total sell bids of 21,43,539 and all bids were traded at floor price of Rs 3,500 per REC. In fiscal 15-16, about 31.4 lacs RECs were traded at IEX, more than double of 15.5 lacs RECs traded last fiscal. Participants: A total of 2,105 participants traded at IEX with 1,253 participants in non-solar segment and 852 participants in the solar segment, the highest ever since market inception. Moreover, a record 270 new participants have registered in the REC segment at IEX in this month. On an overall basis, a total of 3,136 participants are registered in the REC segment at IEX. Of this, 817 are Eligible Entities (RE Generators) 2,306 are Obligated Entities (DISCOMs, Open Access Consumers & Captive Generators) and 13 are registered as Voluntary Entities.

  IEX PXIL Total
Sell Bids (RECs) - Non Solar 78,45,782 57, 51,650 13597432
Sell Bids (RECs) - Solar 21,43,539 12,88,378 34,31,917
Buy Bids (RECs) - Non Solar 6,00,940 5,13,379 11,14,319
Buy Bids (RECs) - Solar 1,08,797 43,269 1,52,066
Market Clearing Price (Rs./REC) - Non Solar 1,500 1,500  
Market Clearing Price (Rs./REC) - Solar 3,500 3,500  
Market Clearing Volume (# RECs) - Non Solar 6,00,940 5,13,379 11,14,319
Market Clearing Volume (# RECs) - Solar 1,08,797 43,269 1,52,066

PXIL successfully conducted REC trading for the month of March 2016 and entered 6th year of transactions in REC. The total cleared volume on the exchange was 5, 56,648 RECs that led to PXIL having a Market Share of 43.96%. In this month clearing ratio was 7.90% due to low demand side participation. The transaction volume in March-2016 session was highest at PXIL since inception of REC transaction from March-2011. The prices in the solar and non-solar categories have remained at the floor level in the market. The high transaction volume was boosted due to the fact that Ministry of New and Renewable Energy (MNRE), Government of India (GoI) in its advt. dt. 17th March 2016 informed all obligated entities to make best use of the REC trading session in order to comply with RPO targets specified by respective SERC / Jt. ERC.

This financial year total traded REC volume on the PXIL registered 19.94% rise with 18, 16,263 traded certificates compared to 15, 14,298 certificates traded in FY 14-15, which led to PXIL achieving market share of 36.65% during the year. Also the total no. of certificates traded on exchanges increased from 30.62 lakhs in FY 14-15 to 49.55 lakhs in FY 15-16. Prior to today’s auction there were more than 17.85 Million REC’s were available in the market for trade. With Ministry of Power (MoP), GoI, implementing the UDAY scheme, the improved financial health of State Distribution licensees will help in reducing the high inventory levels in the coming financial year FY 16-17.