The Indian Energy Exchange as well as Power Exchange of India Ltd are set to resume trading of renewable
energy certificates from Wednesday after a gap of 16 months.
Renewable Energy Certificate or green certificate trades were suspended in July 2020 after APTEL decided to postpone the trading by four weeks while hearing three separate petitions related to an issue of fixing floor and forbearance prices of RECs by Central Electricity Regulatory Commission (CERC).
Appellate Tribunal For Electricity (APTEL) and CERC have given the go-ahead to begin RECs trading in their orders issued on November 9 and November 18, respectively.
RECs trading is done on the last Wednesday of the month. So the trading of green certificates would resume again from November 24, 2021.
IEX in statement said the last REC trade session took place in June 2020. The trade has been resumed in line with APTEL's recent order dated November 9, 2021 and CERC order dated November 18, 2021.
Commenting on the development, Rohit Bajaj, Head- Business Development and Senior Vice President, IEX said REC has been a vital market-based instrument for obligated entities such as distribution utilities, open access consumers, and captive power plants for meeting their RPO (renewable purchase obligation) in the most competitive and efficient manner.
"IEX pioneered trade in the REC market in the year 2010. The exchange has cumulatively traded 390 lakh renewable energy certificates since commencement of the market in the year 2010, and has been playing a significant role in supporting the transition to a sustainable energy economy,Bajaj said.
PXIL also informed the market participants regarding resumption of trading in RECs from November 24, 2021.
MD & CEO of PXIL Prabhajit Kumar Sarkar in a statement said the REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of Renewable Purchase Obligation target for the year.
Under RPO, bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of renewable energy or RECs in lieu of that.
They can buy RECs from renewable energy producers to meet RPO norms. One REC is created when 1 megawatt hour of electricity is generated from an eligible renewable energy source.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.