Entrepreneurs, Investors, Industrialist and Capitive consumers are setting up grid connected Solar Power Generation Projects in India along with inbuilt REC certificate mechanism. Wherein along with every unit of electricity generated, project become liable for REC certificate earnings. Later on monthly interval, REC are traded on Power Exchanges in India with open trade options for buyers and sellers.
As a Project Professional and Financial Advisor for renewable energy projects, I have to reach on conclusion that, which one is bigger risk......... The Tariff or The REC revenue realisation. In my views, REC is proving itself as non-revenue earning certificate credits. As
we cross the halfway mark of this financial year, there has not been any change
in the pattern that has been observed during almost every trading month since April
2014 – ever increasing number of sell bids, but a very stable and extremely low
levels of buy bids. The only difference
this time is that the number of RECs available for sale has gone beyond the 1
Crore mark.
The monetary value of
these unsold RECs at their floor prices (Rs. 9300) is calculated at Rs. 1816 Crore (including of Rs. 350 Crore for unsold Solar RECs and Rs. 1466 Crores for unsold non-solar RECs). If this does not lead
to any action from the regulators and policymakers to protect the investors,
nothing else will boost the solar energy development in our great India
Authored by :
CA Yogesh
Director
BWPM Co.
visit us at : www.Yogesh-CA.blogspot.comDirector
BWPM Co.
