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Most renewable energy credit prices firm to higher amid increased demand


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Most renewable energy credit prices firm to higher amid increased demand

At the over-the-counter markets, prices for U.S. solar and nonsolar renewable energy credits were slightly mixed but generally aimed higher during the week ended Jan. 21. Prices have been supported in many cases by increased compliance demand, as well as efforts to expand compliance targets in some states, brokers said.

At the active New Jersey market, solar RECs gained ground on more active buying. Garden State energy year 2020 SRECs posted an average price at $232.00/MWh, up 42 cents, while 2021 SRECs came in at $233.75/MWh, increasing 50 cents week on week.

At the Class I REC markets in New Jersey, prices also extended higher. New Jersey vintage 2020 Class I RECs were priced at $11.05/MWh, increasing 10 cents, and vintage 2021 Class I RECs were seen at an index of $11.36/MWh, up 17 cents from the week prior.

In the nearby Pennsylvania SREC market, energy-year 2020 prices rose 25 cents to $21.38/MWh. Pennsylvania energy-year 2021 SRECs gained 12 cents to $23.50/MWh. Pennsylvania vintage 2020 Tier I RECs lost 5 cents on the week to $10.88/MWh, while vintage 2021 Tier I RECS were up 1 cent to $11.19/MWh.

To maintain compliance with the state's renewable portfolio standards, Pennsylvania will need to add nearly 1,700 MW of new wind capacity by 2030, according to a November 2020 report from S&P Global Market Intelligence. This could drive REC prices higher in the near term as the compliance target ramps up to 2025 before easing as interim targets are achieved.

To the north, Maine Class I REC values were flat to lower during the week ended Jan. 21. Maine vintage 2020 Class I RECs were assessed at an average of $2.09/MWh during the review week, losing 47 cents on the week. Maine vintage 2021 Class I RECs posted an index at $4.00/MWh, flat to the week before.

The Maine Public Utilities Commission recently issued a request for proposals for the sale of RECs, the second procurement to comply with the state's new renewable portfolio standards.

Maine adopted a law in June 2019 that called for 100% renewable-generated electricity by 2050. The law also directed the commission to conduct two competitive solicitations to procure renewable energy credits in an amount equal to 1.715 million MWh.

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