Renewable energy newsletter -September 2012

Posted on October 2, 2012 by

September 2012 Highlights;

Volume of REC traded till Sept 2012

Volume of REC traded till Sept 2012

Renewable Energy: Achievement and Bottlenecks:  Over the years, RE has grown steadily to become an important part of the country’s energy mix. Wind energy has achieved substantial size while solar energy is beginning to accelerate. For further growth however, major improvements in the country’s distribution  capabilities are required. Share of renewable energy in Indias energy mix

A number of steps have been taken to promote the electricity sector in India – EA 2003, unbundling of SEBs, policy and tariff support to RE sources etc. Generation capacity in the country has reached from 100 GW in 2001 to 200 GW in 2012. At the same time however, demand has grown faster than supply. This gap is expected to persist as further addition in thermal generation is limited by coal  extraction capacity.

REC trading scenario: 

The REC market in September 2012 recorded the highest volume of REC issuance ever resulting in the highest closing balance in the REC trade, Demand however remained subdued. Price realization remained at floor level of Rs. 1,500 with all the buy bids cleared at both IEX and PXIL. Even if we consider that only 20% of the RPO compliance is done through RECs, annual demand of RECs for FY  12-13 should be more than 1 Crore. This demand is not yet reflected in the REC market as only less than 12 lakh RECs have been traded till September. This shows that while regulators have provided support to RE through RPO, more effort on enforcement is required.

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