Trading in renewable energy certificates (RECs) witnessed a 4% year-on-year decline this year, with the
India Energy Exchange (IEX) cumulatively trading 89,55,572 RECs this year against last year’s 93,29,253.
The decline in trade was mainly due to lower REC inventory, which kept lower supplies of renewable energy to the grid.
REC inventory are those renewable energy credits attributable to the generating plants that own electricity generated from the renewable source first and then push it to the grid. REC, a market-based instrument, certifies that the bearer owns one megawatt hour of electricity generated from renewable sources. Once the provider has fed the renewable energy into the grid, they receive the REC which they can sell in the open market as a commodity.
