Demand for renewable energy credits (RECs) in India once more outstripped supply in June, when trade volume reached only 123,768 for solar RECs and 449,367 for non-solar RECs, despite 709,446 and 1,491,425 buy bids being placed respectively. This is due solely to the limited volume of RECs available. The Indian government has been trying hard to encourage private investment into renewables by offering incentives such as tax breaks on purchase of renewable energy.
Demand for renewable energy credits (RECs) in India once more outstripped supply in June, when trade volume reached only 123,768 for solar RECs and 449,367 for non-solar RECs, despite 709,446 and 1,491,425 buy bids being placed respectively. This is due solely to the limited volume of RECs available. There are not enough RECs in circulation to fulfil renewable purchase obligations (RPOs), which means many entities need to pay currently high REC prices to satisfy at least a part of their RPOs and still face penalties for not meeting them entirely.