Nov. 30 (Bloomberg) — Demand for Indian renewable-energy
credits plunged 41 percent in November from the previous month
as the failure of regulators to enforce clean-energy targets
prompted companies to abstain from trading, REConnect Energy
Solutions Pvt. said.
That drop in demand drove the price of a credit down to
1,500 rupees ($28), the minimum set by the country’s Central
Electricity Regulatory Commission, Vishal Pandya, a director at
Indore-based REConnect, said today in a phone interview.
Cash-strapped state distribution companies, the main
intended buyers, are ignoring their obligations counting on
government leniency. Private companies are now following suit,
Pandya said.
The 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 renewable sources.
Those unable to secure enough clean power locally can meet their
target by purchasing credits sold by wind and solar farms,
hydropower and biomass plants from the country’s two power
exchanges.
“The market condition looks very gloomy,” Pandya said.
Each credit represents one megawatt-hour of clean
electricity fed into the grid.
To contact the reporter on this story:
Natalie Obiko Pearson in Mumbai at
npearson7@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net
