The sales of renewable energy certificates (RECs) stood at 17.45 lakh in April-September period, a jump of about 58%, compared to 11.05 lakh in the same period last fiscal indicating increasing compliance of renewable purchase obligations (RPOs). The sale of RECs had increased by about 62% to 49.56 lakh last fiscal as compared to 30.64 lakh in 2014-15. The Central Electricity Regulatory Commission has approved two power exchanges - Indian Energy Exchange (IEX) and Power Exchange India (PXIL) to hold auction of RECs on the last Wednesday of every month.
IEX has sold 11.81 lakh RECs in April-September this fiscal compared to 8.73 lakh in same period in previous financial year. Similarly, PXIL sold 5.64 lakh RECs in the six month period compared to 2.32 lakh a year ago. RECs sale stood at 2.73 lakh in July, 4.68 lakh in June and 1.82 lakh in May this year. The sale of RECs in September this year has dipped to a four-month low of 2.06 lakh on the two exchanges.
Under the REC mechanism, an entity can generate electricity through renewable resources in any part of the country. The generator receives the cost equivalent of electricity produced from any source while the environment attribute is sold through the exchanges at market-determined price.