Update on REC Trading for the month of November 2013: Non-Solar RECs Up by 105%, Solar RECs down by 20%...

The 9th REC Trading Session of the Financial Year 2013-14 was conducted on 27th November 2013 on both the Power Exchanges, IEX and PXI.

In this session, substantial growth in demand for Non-Solar RECs was observed; the increase in Buy bids has re-infused the faith in the future of REC markets.

However, the Solar REC market has not shown any growth in this trading session, but the increasing participation from the buyers will ensure a promising future for solar market.

In comparison to last trading session of October 2013, the buyer’s participation has substantially increased by 105.08% for Non-solar and decreased by 20.56% for Solar.

This seems to be on account of the RPO enforcements by various State & Central Regulators and expected to create more demand of certificates in the near future.

Analysis of Non-Solar REC Segment

Non-Solar REC Segment
Parameter	IEX	PXI	Total	Trend
Buy Bids	97,743	2,11,185	3,08,928	105%
Sell Bids	27,60,452	13,79,113	41,39,565	7%
Cleared Volume	97,743	2,11,185	3,08,928	105%
Cleared Price	1,500	1,500	1,500	0%
Cleared Volume as % of Total Sell Bids				7.46%
Transaction Amount (Rs. Crs)				46.34

• The Cleared Volume of Non-Solar RECs have been increased by more than 105%
• However, the above was mainly on account of the observed increased of more than 308% on PXI; on IEX a marginal decrease of 1% was observed.
• The Clearance Ratio in terms of Perc over Sell Bids has been increased to 7.45% from 3.88% in the previous month.
• The Market Clearing Price observed was the Floor Price i.e Rs. 1500 per RECs.
• Below charts shall give more clarity this.

Analysis of Solar REC Segment

Solar REC Segment
Parameter	IEX	PXI	Total	Trend
Buy Bids	6,983	371	7,354	-21%
Sell Bids	45,819	15,538	61,357	-10%
Cleared Volume	6,983	371	7,354	-21%
Cleared Price	9,300	9,300	9,300	0%
Cleared Volume as % of Total Sell Bids				11.99%
Transaction Amount (Rs. Crs)				6.84

• The Cleared Volume of Solar RECs have been decreased by around 21%.
• However, the above was mainly on account of the observed decrease of more than 86% on PXI; on IEX,  increase of 6.6% was observed.
• The Clearance Ratio in terms of Perc over Sell Bids has been decreased to 12% from 13.6% in the previous month.
• The Market Clearing Price observed was the Floor Price i.e Rs. 9300 per RECs.
• Below charts shall give more clarity this.

Excel (xls) file for the complete data on RECs (Both Solar & Non Solar) for the current financial year can be downloaded from this link.
Source: IEX and PXI