Prices of renewable energy certificates (REC) on the Indian Energy Exchange (IEX) fell to a historic low during April 2024.
In a release, IEX said that during the REC trading session held on April 24, 2024, prices recorded an all-time low of Rs.204 per certificate. IEX held two REC trading sessions in April 2024. In the one on April 10, 2024, RECs were traded at Rs.240 per piece.
The average REC trading price in April 2024 was around 80 per cent lower than in April last year. Incidentally, a total of 6.18 lakh RECs (equivalent to 618 million units or MU) were traded on IEX in April 2024.
“These prices provide an opportunity to obligated consumers to meet their Renewable Purchase Obligations, and voluntary customers to meet their sustainability aspirations,” the IEX release noted.
In May 2024, IEX is scheduled to have two REC trading sessions – on 8th and 29th. The next REC trading sessions at the Exchange are scheduled on08thMay’24 and 29th May’24.
Meanwhile, overall electricity trading volumes on IEX touched 9,044 MU in April 2024, marking a 14.1 per cent increase year-on-year. (See table)
Favourable policy and regulatory interventions by the Government and Regulators led to an improved sell scenario, leading to increased sell liquidity at IEX, despite an increase in the country’s energy demand, the release noted.
As a result of this balance between supply and demand, the prices on the exchange have remained steadfast. In preparation for the summer months, the Ministry of Power has announced several measures, such as mandating the sale of surplus un-requisitioned power on power exchanges by all thermal generating stations and rescheduling of planned maintenance of thermal power plants to the monsoon season.
Also read: Renewable Energy Dominates REC’s Sanctions In FY24
Featured photograph (source: INOX Wind) is for representation only
