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NJ solar renewable energy credit prices extend gains on active buying

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NJ solar renewable energy credit prices extend gains on active buying

Renewable energy credit prices at the over-the-counter markets diverged in the week ended Aug. 22.

Ohio in-state solar and located RECs held firm, while solar and non-solar REC prices in New Jersey were swept higher again amid ongoing active buying interest.

Garden State energy year 2019 SRECs were priced at $239.75/MWh, rising more than $3 in value from the week prior, while energy year 2020 SRECs climbed nearly $4.50 to an index at $240.83/MWh.

New Jersey class I markets gained traction, with vintage 2019 class I RECs eyed at an average of $6.41/MWh, up 11 cents, and vintage 2020 class I RECs assessed at an index of $6.64/MWh, rising 11 cents week over week as well.

Ohio SREC prices remained steady following a period of weakness driven by the recent passage of legislation that would eliminate the state's solar carve-out starting in 2020. Ohio 2019 in-state SRECs notched an average of $6.94/MWh, and 2020 in-state SRECs saw an index of $8.50/MWh.

The legislation, which was signed into law by Ohio Gov. Mike DeWine at the end of July, would also lower and freeze the state's renewable energy mandate from 12.5% to 8.5% in 2026. Analysts noted previously that the law could work to press Ohio in-state SREC prices down to about $4.00/MWh eventually. Once the new rule goes into effect, analysts expect that available Ohio-generated SRECs could be eligible to be sold in the Pennsylvania Tier I REC and Ohio REC market instead.

During the week ended Aug. 22, Ohio-located 2019 RECs were unchanged at an average of $5.38/MWh, while 2020 RECs held at $5.62/MWh.

Pennsylvania Tier I REC prices edged slightly higher during the period under review. Vintage 2019 Tier I RECs posted an index of $6.39/MWh, while vintage 2020 Tier I RECs in the state ran at an average of $6.61/MWh, up 10 cents and 15 cents, respectively, on the weekly period.

In New Hampshire, vintage 2019 class III RECs were priced at an average of $40.75/MWh, with vintage 2020 class III RECs assessed at $33.50/MWh, firm to $1.50 higher, respectively, on the week.

In the last several months, New Hampshire class III REC prices have climbed sharply due to an uptick in demand requirements. Class III RECs in New Hampshire include existing biomass systems of 25 MW or less, and methane gas, provided the generator began operation before Jan. 1, 2006.

Meanwhile, legislation in New Hampshire that would have required Eversource Energy to buy electricity from the state's six biomass power plants has been vetoed by Gov. Chris Sununu. Sununu vetoed H.B. 183, which sought to create a new category of baseload RECs for Eversource to purchase as a means of supporting the state's forest industry.

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