RECs can be traded in the market to meet Renewable Purchase Obligation (RPO) Which refers to Renewable Purchase Obligation and is mandated by SERCs and along with other Acts is mainly guided by CERC (Terms for Issuance and Recognition of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010.
Basic Contract Specification
Type of Market |
Renewable Energy Certificate Contract |
Type of Contracts |
1. Non Solar Certificates |
Trading System |
Through Power Exchange |
Trading Methodology |
Anonymous close bid double-sided Auction for each type of Contract separately and allocation of selected trade is Price-Pro-rata-basis |
Auction Timing |
13.00 hours to 15.00 hours on the day of auction or as amended by Exchange from time to time. |
Minimum Bid Volume |
1 Certificate(Equivalent to 1MWh of energy injected) for each type of contract |
Minimum Bid Price |
Floor Price ( as notified by CERC from time to time) for each type of contract |
Maximum Bid Price |
Forbearance Price (as notified by CERC from time to time for each type of contract. |
Minimum Volume Quotation Step |
1 Certificate (Equivalent to 1MWh of Energy Injected) |
Minimum Value Quotation step |
Re 1 per Certificate or as defined by exchange from time to time |
Settlement Price(S) |
As per Matching rule of the Exchange |
Auction Trade session
The auction trade session timing for Solar and Non-Solar certificates would be from 1 pm to 3 pm on the last Wednesday of every month. The auction trade session date/timings may be modified by the exchange from time to time in accordance with the detailed procedure or the REC regulation and would be notified to the members from time to time.
Trade Cycle for the REC Mechanism:
Step-1
The bidding window would open simultaneously on all the power exchange(s) designated for dealing in the RECs by CERC from 13:00 Hrs to 15:00 Hrs on the day of the auction.
Step-2
The Power exchange(s) shall intimate the details of the maximum offer placed for dealing by each eligible entity to the central agency by 15:30 Hrs on the day of auction.
Step-3
The central agency shall check the combined maximum bid volume in the power exchange(s) for each eligible entity against the quantity of Valid RECs for that entity for both ‘solar’ and ‘Non-Solar’ Certificates. The central agency shall send a report to power exchange(s) confirming the availability of the valid RECs with the eligible entity by 16:00 Hrs.
Step-4
The power exchange(s) shall work out the market clearing price and the market clearing volume taking into account the advice received from central agency and send the final cleared trades to the central agency for extinguishing of the RECs sold in the records of the central agency by 17:00 Hrs.
Step-5
The central agency shall issue a report indicating the extinguishing of the RECs held in its records based on the final trades cleared on the power exchange(s) by 18:00 Hrs.
WeCompli India Pvt Ltd is a member of Power Exchange India Ltd, We help the client in trading their RECs. For the financial year 2012-2013 WeCompli India Pvt. Ltd. Traded around 19000 Non-Solar REC in the exchange.
