Demand for clean-energy credits in India rose for the fourth straight month as companies seek to comply with renewable targets amid enforcement by government regulators.
There were 403,862 bids to buy wind, hydropower and biomass credits, up 31 percent from the previous month, according to data from trader REConnect Energy Solutions Pvt.
Buyer-side participation is expected to increase through to April as companies purchase credits to fulfill renewable obligations by the end of the financial year compliance period, REConnect said in an e-mail to clients. Demand has surged almost 10-fold since a low in August as regulators in Punjab, Uttarakhand, Maharashtra, Chhattisgarh and Goa began cracking down on companies flouting rules.
The government requires state-run electricity distributors and large industrial companies including Coal India Ltd. and Tata Power Co. to get as much as 10 percent of their energy from renewables. Those unable to get enough locally must purchase credits from clean-power plants.
In this month’s session, wind, hydropower and biomass credits traded at their floor price of 1,500 rupees ($24). Solar credits, which trade separately, also cleared at their minimum of 9,300 rupees. Each credit represents 1 megawatt-hour of electricity fed into the grid.