Platts proposes to expand US renewable power and carbon certificate coverage

• Proposal to launch new delivery months for emissions assessments
• Proposal to launch new vintages and locations for RECs, SRECs
• Proposal to increase frequency of existing assessments

S&P Global Platts proposes to launch 141 new price assessments for Renewable Energy Certificates, the Regional Greenhouse Gas Initiative, California Carbon Allowances and California Carbon Offsets, and to change the frequency of existing REC and carbon assessments from weekly to daily, effective April 1.

The proposal follows an extensive market research and Platts observation of rising liquidity in various REC and carbon markets. The proposal aims at enhancing market transparency in the complex renewable energy and carbon markets.

CHANGE OF FREQUENCY: Platts proposes to move the publication of the following assessments to a daily cadence. These assessments are currently published on a weekly basis.

NEW DELIVERY STRIPS FOR EMISSIONS: Platts proposes to start assessing current month and next month delivery for RGGI, CCA and CCO, in addition to currently assessed December delivery for these certificates. Platts has observed the tendency in the market to trade across strips, or delivery months. The current and next months would roll on the first of the month. December delivery assessment currently rolls on Jan.1.

Example: RGGI certificate

NEW VINTAGES FOR REC, SREC: Platts proposes to assess prior year, current year and next year vintage for all Class 1 and Tier 1 RECs and Solar RECs, given existing market interest in trading vintages other than the current vintage. The assessments of all vintages would reflect prompt delivery. Platts currently assesses only current year. The vintages will roll on the first day of each new energy year, which varies by location, according to the date established for each certificate by relevant legislation.

Example: New Jersey REC Class 1

Energy year: 2022

Roll Date: October 2

NEW LOCATIONS, CLASSES, TIERS FOR REC, SREC: Platts has observed regulatory differences among the US states which have resulted in diverging REC and SREC markets across the country. Platts proposes to start assessing RECs and SRECs in additional locations - US states, groups of states and districts - to provide transparency in a wider geographic area. The definitions of classes, tiers and buckets are specified by each location's legislation and refer to technology type, facility age or facility size.

The following locations, classes and tiers would be included in the launch:

RECs:

SRECs:

All REC, RGGI, CCA and CCO assessments would reflect the value of the certificate in $/MWh, $/Allowance or $/mt. The assessments would be published daily and be based on the latest bids, offers, trades, indicative data, and other relevant market information received up to the close of the assessment process at 2:30 pm US and Canada Eastern Time (GMT-4).

Pricing information for certificates with other specifications and terms may be normalized to the proposed standard.

The existing and new assessments would be published in the Megawatt Daily, Energy Trader, Platts Dimensions Pro, Platts real-time fixed pages PEA0100 and AGP0100 and Platts price database.

As part of the proposal, Platts is seeking market feedback on certificate liquidity and specifications.

Please send all feedback, comments and questions by Feb. 14 to ElectricityPrice@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.