Solar REC trading commenced in India

With the Indian Government planning to promoter Solar Power projects in India, commencement of REC (Renewable Energy Certificate) trading in Indian power exchanges is starting of Solar Revolution in India.

Wind power REC is already traded in power exchanges in India; Solar REC trading in India has commenced during May-2012. First trade taken place with 249 certificates changing ownership hands on exchange with an average realization price of INR 13,000=00 per certificate.

In open market REC trade mechanism, a project developer is required to setup up Solar Power project without any tariff bidding or allocation of capacity. Solar project developer can setup Solar Power project with chosen technology and start supplying electricity to nearest grid station. Wherein developer company will get revenue from Sale of Power + revenue from sale of REC in open market.

Demand for Solar REC is likely to be much higher than its supply by developers in India, because various state electricity utilities, captive power generation industries and other big industrial users have to meet their renewable purchase obligations; as per prescribed guidelines by regulator.

Huge capacity addition in Solar Project have been noticed, after implementation of REC mechanism. Initial bottlenecks of arrangement of debt funding is still making it difficult to get proper debt:equity mix for setting up of Solar Power project.

Regulator has already decided Floor price and Forbearance prices (upto INR 13,400=00) for Solar REC to be generated and traded in coming years. Which makes a good business mix to start with most tempted Solar Power Generation Projects in the State of Rajasthan.

Rajasthan is hub of Solar Power projects with maximum installation in JNNSM allocations. Highest Solar radiation in Western Rajasthan is generating best ROI for Solar Power projects in Rajasthan. Procedures of Govt. of Rajasthan are much favourable for allotment of land, clearance of project, grid connectivity etc., making it speedy installation of Solar Project in Rajasthan.

contact:

CA Yogesh
Director
BWPM Co.

visit us at : www.Yogesh-CA.blogspot.com