Demand for renewable-energy credits in India declined 34 percent in February from the previous month as regulators failed to enforce clean-energy targets for companies.
Credits sold for 1,500 rupees ($27) each, the floor price set by the regulator, according to REConnect Energy Solutions Pvt., an Indore-based trader said. Of the total 2 million renewable credits available in the market, REConnect recorded a total 153,629 bids for solar and non-solar credits.
“Regulators and regulations continue to lose relevance as demand continues to dip,” said Vibhav Nuwal, a director at REConnect Energy Solutions.
The Indian government requires companies including state-run power distributors, Coal India Ltd., Oil & Natural Gas Corp., Tata Power Co. and other large power consumers to buy as much as 10 percent of their electricity every year from renewables. Those unable to obtain enough clean power locally can meet their target by purchasing credits from the country’s two power exchanges. They’re sold by wind and solar farms as well as hydropower and biomass plants.
Each credit represents one megawatt-hour of clean electricity fed into the grid.