REC trading for the month of August 2013 concluded yesterday. The trading statistics were similar to last month especially the prices discovered for both solar and non-solar RECs. It is very likely that the solar RECs would continue to trade at the floor price as the supply continues to grow much faster than the demand.
The non-solar REC segment took a hammering this month as the buy bids fell significantly. The number of buy bids fell by about 75% across both the exchanges resulting in a drop in traded volume by a similar percentage compared to last month’s trading figures. The number of sell bids however increased slightly by about 7% ensuring that the demand-supply gap remains wide. The non-solar REC price remains at the base price of Rs. 1500 per REC both at the IEX and PXIL.
The demand for solar-RECs increased by about 14% compared to last month with the total volume traded correspondingly increasing by 14%. The volume of RECs traded fell at IEX but improved in the PXIL exchange. The supply however continues to grow with the total volume available for sale increasing by about 30% widening the gap between the number of certificates available for sale and those being purchased. With more solar-REC based projects on the horizon, the gap will continue to grow unless there is a significant demand spike which looks unlikely in the short term. The price of the solar RECs continues to remain at the floor price (Rs. 9300 per certificate) at both the exchanges.