India’s Renewable Credit Demand Surges on EnforcementNatalie Obiko Pearson
Demand for renewable-energy credits in India jumped threefold in October as regulators cracked down on companies ignoring government-mandated clean-power targets.
Bids to buy wind, hydro and biomass credits numbered 150,640, compared with 49,831 the previous month, according to data from trader REConnect Energy Solutions Pvt.
The government requires 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 source enough locally must comply by purchasing credits from clean-power plants.
The surge in demand indicates companies are responding to efforts by state regulators in Punjab, Uttarakhand, Maharashtra and Chhattisgarh to enforce the rules, REConnect said in a note to clients. On Sept. 11, Uttarakhand’s electricity watchdog threatened to fine the local state-run power distributor for failing to meet its targets in the last financial year.
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 price of 9,300 rupees. Each credit represents 1 megawatt-hour of electricity fed into the grid.