Demand for India Renewable Credits Doubles in NovemberNatalie Obiko Pearson
Demand for renewable-energy credits in India doubled in November as regulators enforce clean-power targets for companies and state-run utilities.
There were 308,928 bids to buy wind, hydro and biomass credits, after 150,640 the previous month, according to data from trader REConnect Energy Solutions Pvt.
The government requires electricity distributors and large industrial companies such as 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 with the regulation by purchasing credits from clean-power plants.
Demand has surged more than sevenfold since a low in August as regulators in Punjab, Uttarakhand, Maharashtra, Chhattisgarh and Goa have begun to crack down on companies flouting rules. On Oct. 25, the electricity watchdog for Goa and the seven Indian union territories warned local state-run distributors, which have failed to meet their targets for the past three years, to comply by April or face penalties, according to REConnect.
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.