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June

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REC Trading in May’13

by Pradeep

Trading in the month of April was a little disappointing compared to that of March. But this was expected as March witnessed good trading activity owing to year-end compliance. However, the trend continue in May too with Non-Solar trading staying close to last month’s 18 month low. On the Solar front too, Average Clearing Price hit all time low of Rs.11186/REC. Read on to know more…

The table below summarizes the trading for May on each of the power exchanges – IEX and PXIL.

REC Trading for May'13

 

Here are a few numbers and graphs with respect to Solar and Non-Solar REC trading in May.

 

Non-Solar REC trading:

As is the trend, all the Buy Bids (52968) were cleared resulting in a Trading Value of Rs.7.95 Crores. Clearing Price stood at the usual Rs.1500 owing to oversupply. Trading Volume which was expected to pick up as against the last month’s disappointing numbers didn’t see any considerable increase. One reason for this could be that more and more sellers are keeping stock of their RECs, which now have an increased validity of 2 years, so as to trade later when RPO enforcement is in place. The graph below shows the trends in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months.

Non-Solar REC Trading-Last 3 months

 

Solar REC trading:

The Average Clearing Price fell by a whopping 7.5% to Rs.11186/REC from last month’s Rs.12093/REC. This is because of the huge increase (57%) of Sell Bids to 4833 (as against last month’s 3077) and and an equally huge decrease (43%) in Buy Bids to 1999 (as against last month’s 3522). This is the first time since the beginning of Solar REC Trading that the number of Sell Bids (cumulative of both exchanges) are more than the number of Buy Bids (cumulative of both exchanges). Against Buy Bids of 1999, 4833 Solar RECs were put up for sale and 1703 got cleared resulting in a Trading Value of Rs.1.9 Crore which is a 29% decrease from March. Clearing prices at IEX and PXIL stood at Rs.11490/REC and Rs.10990/REC respectively. The graph below shows the trends in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months.

Solar REC Trading-Last 3 months

Please refer to the May’13 issue of our monthly newsletter - REChronicles - for a detailed report on REC Trading/Inventory for April and to track the happenings in the industry.

You can subscribe to REChronicles here to have the newsletter delivered to your inbox as and when we release it.

 

 

 

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