S&P Global Commodity Insights expands US renewable power and carbon certificate coverage

• S&P Global expands delivery months for emissions assessments
• S&P Global adds new vintages and locations for RECs, SRECs
• S&P Global keeps weekly cadence for existing assessments

S&P Global Commodity Insights launched 139 new price assessments for Renewable Energy Certificates, the Regional Greenhouse Gas Initiative, California Carbon Allowances and California Carbon Offsets, effective April 7.

The new assessments will be published every Thursday, or the prior business day if Thursday is a public holiday, together with S&P Global's previously existing REC, RGGI, CCA and CCO assessments.

S&P Global announced this change in a subscriber note published March 4 here:

https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes/030422-s-p-global-commodity-insights-to-expand-us-renewable-power-and-carbon-certificate-coverage.

The launch follows an extensive market research and S&P Global's observation of rising liquidity in various REC and carbon markets. The launch aims at enhancing market transparency in the complex renewable energy and carbon markets.

S&P Global continues the publication of previously existing assessments on a weekly basis at this time. The original proposal was to increase the frequency of the following assessments to daily:

*Alternative Energy Credit

NEW DELIVERY STRIPS FOR EMISSIONS: S&P Global started assessing current-month and next-month delivery for RGGI, CCA and CCO, in addition to previously assessed December delivery for these certificates. S&P Global has observed the tendency in the market to trade across strips, or delivery months. The current and next months will roll on the first of the month. December delivery assessment rolls on Jan.1.

Example: RGGI certificate

NEW VINTAGES FOR REC, SREC: S&P Global assesses prior-year, current-year and next-year vintages 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 reflect prompt delivery. S&P Global previously assessed only current year. The vintages roll on the roll date, 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: S&P Global has observed regulatory differences among the US states, which have resulted in diverging REC and SREC markets across the country. S&P Global started 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 assessments are published weekly in the Megawatt Daily, Energy Trader, on Platts real-time fixed pages PEA 0750, AGP 2750, PEA 0751, AGP 2751, PEA 0752, AGP 2752, PEA 0753, AGP 2753, PEA 0754, AGP 2754, Platts Dimensions Pro and in the Platts price database under the following codes:

The new assessments are based on the same methodology as S&P Global's previously existing REC and Emissions assessments, which can be found here:

/content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/USREC.pdf

All REC, RGGI, CCA and CCO assessments reflect the value of the certificate in $/MWh, $/Allowance or $/mt and are 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) on the day of the assessment.

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

Please send comments, questions, and other feedback to electricityprice@spglobal.com and electricityprice@spglobal.comelectricityprice@spglobal.com.

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