August 5, 2012. Renewable Energy Certificate (REC) trade - a mechanism to trade renewable energy including solar, wind, biomass and small hydro projects on platforms similar to stock exchanges -is slowly gaining ground in India. REC trade, which began in India in March, has already gained popularity in countries such as Australia and Japan. REC trade through the Indian Energy Exchange and Power Exchange India Ltd (PXIL) has till date generated R431 crore for the country's renewable energy producers. One REC equals 1 MW of electricity produced from renewable resources. REC trade on exchanges began after recommendations were issued in the National Action Plan on Climate Change by Prime Minister's Council on Climate Change. In 16 months since its introduction, 11.5% of the total installed capacity of renewable energy sources -2,913 MW out of the total 25,409 MW -has been registered with the REC scheme. State electricity distribution companies and public sector utilities, which are mandated to buy a certain portion of power from renewable sources under renewable purchase obligation (RPO), are the primarily drivers of the REC market. However, the demand-supply mismatch in the energy sector is likely to hinder its growth in the short-term, said experts. For example, against a supply of half-a-million non-solar RECs, the demand was only about 161,000 in July, almost half of that in June. As a result prices fell from' 2,400 to' 2,200. Solar RECs, however, continue to be in demand, being traded at' 12,800.