The objective of the RECs is to provide easy avenues for different kinds of entities such as power distribution companies so that they will be able to meet their green-energy obligations.
Meanwhile, one REC is equivalent to 1 MW of electricity produced from the renewable sources.
IEX Director (Business Development) Rajesh K Mediratta stated that the renewable generators are incurring loss due to the unsold quantum of RECs in the market. In the last fiscal of 2014-15, merely 30.6 lakh RECs were traded on the exchange, despite the fact that 96 lakh such certificates were available.
Mediratta stated that the main reason for decline in demand is the lack of interest shown by obligated entities in meeting their Renewable Purchase Obligation (RPO) targets. He further stated that the future of the REC market is directly dependent on how effectively the State Electricity Regulatory Commissions (SERCs) execute the compliance of RPO by the obligated entities.
Of late, some interest has been shown in RECs by few voluntary buyers. Unless there is strict adherence of the RPO, the situation at the REC market is not going to change, feel experts.
Article source: http://feedproxy.google.com/~r/Energynext/~3/gPEn31Xqn00/
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