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Indian demand for renewable energy credits almost triples in March

Power distributor and consumer credits to meet India’s clean energy goals see dramatic boost in run up to fiscal year end

The Indian credits are sold by wind, solar, hydropower and biomass facilities

Demand for renewable energy credits in India almost tripled in March this year, according to reports. Credits used by power distributors and industrial electricity consumers to meet annual government goals for clean generation in the BRIC country, saw the dramatic increase last month in the run up to the fiscal year end, Bloomberg reports.

Bids for credits rose to 435,481 in March from 159,729 the month before, according to REConnect Energy Solutions Pvt., a trader that records all of the transactions on the Indian Electricity Exchange and the Power Exchange of India.

"This was also the highest volume cleared in the financial year," REConnect Director Vibhav Nuwal Bloomberg said. "March was the last trading session for the compliance period." Demand for credits wasn't sufficient to raise their price above the floor set by the regulator of 1,500 rupees (USD 28) each, according to REConnect, based in Indore. Each credit represents 1MWh of electricity fed into the power grid.

India requires companies such as state power distributors, Coal India Ltd. (COAL), Oil & Natural Gas Corp. and Tata Power Co. (TPWR) to get as much as 10 per cent of their electricity from renewables. Those unable to get enough clean power locally may meet the goal by buying credits from the two power exchanges. The credits are sold by wind, solar, hydropower and biomass facilities.