Demand for clean-energy credits in India plunged to a seven-month low as companies, which have until next year to comply with renewable targets, sat out of the latest monthly trading session.
There were 79,354 bids to buy wind, hydropower and biomass credits, the least since September, according to data from trader REConnect Energy Solutions Pvt. yesterday, a public holiday.
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 sold over power exchanges in monthly trading sessions.
The trading session this week was the first of the current financial year. Companies have until March 31, 2015 to buy credits to comply with their obligations.
Wind, hydropower and biomass credits traded at their floor price of 1,500 rupees ($25). 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.