Trading in renewable energy certificates or green certificates was suspended in July 2020 after APTEL decided to postpone the exchange for four weeks while hearing three separate petitions related to an issue of floor pricing and abstention from CERs by the Central Electricity Regulatory Commission (CERC).
The Electricity Appeals Tribunal (APTEL) and CERC have given the green light to begin negotiating CERs in their orders issued on November 9 and 18, respectively.
The RECs are negotiated on the last Wednesday of the month. Thus, the trading of green certificates would resume from November 24, 2021.
In a statement, IEX said that REC’s last trading session was in June 2020. Trade resumed in accordance with APTEL’s recent order dated November 9, 2021 and the CERC order dated November 18, 2021.
Commenting on the development, Rohit Bajaj, Head of Business Development and Senior Vice President of IEX, said that REC has been a vital market instrument for obligated entities such as utilities, open access consumers and retailers. captive power plants to achieve their RPO (renewable purchase obligation) in the most competitive and efficient manner.
“IEX pioneered trading in the REC market in 2010. The exchange has traded a total of 390 lakh of renewable energy certificates since the market began in 2010, and has played an important role in supporting the transition. towards a sustainable energy economy, “Bajaj said.
PXIL also informed market participants of the resumption of trading on RECs from November 24, 2021.
PXIL Chief Executive Officer and CEO Prabhajit Kumar Sarkar said in a statement that the REC mechanism is a market-based instrument to promote renewable energy and facilitate meeting the goal of mandatory purchase of renewable energies for the year.
Under RPO, wholesale buyers like discoms, open access consumers, and capacitive users are required to purchase a certain proportion of renewable energy or CERs instead.
They can buy RECs from renewable energy producers to meet RPO standards. A REC is created when a megawatt hour of electricity is produced from an eligible renewable energy source.