REC trading suspension has huge impacts, say traders

01 Dec 2020 CW Staff

Power exchanges like PXIL and IEX say that further suspension on trading of renewable energy certificates (RECs) would have an impact on the ability to meet renewable purchase obligation (RPO) targets. IEX Head Rohit Bajaj said that to fulfil their RPO requirements, the REC market was a key avenue for obligated entities like captive power producers, discoms, and open access consumers.

Trading of RECs got paused in July 2020 after the Appellate Tribunal for Electricity (APTEL) decided to delay trading by four weeks while hearing three petitions against Central Electricity Registry Commission's (CERC) order of determining floor and forbearance prices of RECs, after which trading was not resumed.

Under RPO, bulk purchasers like discoms and open access consumers need to buy a portion of RECs from renewable energy providers. One REC is formed when 1 MWh of electricity is generated from an eligible renewable energy source.

Kapil Dev, PXIL VP of Business Development, was of the opinion that floor and forbearance prices should be left on the market forces to decide. The Green Energy Association, the Indian Wind Power Association, and Techno Electric and Engineering Company Ltd had appealed against the CERC order. In June, the Supreme Court rejected the Green Energy Association's appeal. Industry experts opine that higher REC prices put an additional burden on consumers.

Source: Energy World - The Economic Times

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

BCCL Hands Over Dugdha Coal Washery To JSW Steel

Bharat Coking Coal has handed over the Dugdha Coal Washery to JSW Steel, marking the first coal washery asset monetisation under the Ministry of Coal's asset monetisation programme. The handover took place in the presence of senior officials from Bharat Coking Coal Ltd, JSW Steel and JSW Energy. The washery has a capacity of two million tonnes per annum (mn t per annum), and its transfer is intended to introduce private sector practices into coal beneficiation operations. The monetisation is aimed at modernising coal sector assets, improving operational efficiency and enhancing resource utilis..