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NJ solar RECs varied; Mass. class I RECs extend lower

Renewable energy credit prices in Connecticut began the new month firm, while New Jersey solar prices were mixed.

During the week ended March 2, Connecticut class I RECs for 2017 saw an index again at $7.75/MWh.

New Jersey solar REC prices were varied during the week ended March 2. The New Jersey energy year 2018 SREC market was up 8 cents to an average at $221.83/MWh. Garden state energy year 2019 SRECs posted an average at $222.67/MWh, down 23 cents week over week.

Atlantic City Electric Co., Jersey Central Power & Light Co., Public Service Electric and Gas Co. and Rockland Electric Co. will be holding an auction March 27 to sell New Jersey SRECs. At the auction, between 2,900 and 4,300 energy year 2017 SRECs and between 40,000 and 60,000 energy year 2018 SRECs will be offered for sale.

New Jersey vintage 2018 class I REC prices dropped 9 cents on the week to an average at $5.47/MWh, as vintage 2019 class I RECs were down 7 cents to an index at $5.83/MWh.

During the week, Massachusetts vintage 2017 class I REC prices eased more than $1 to an index at $6.50/MWh. Vintage 2018 class I RECs in the state were pegged at an average of $17.54/MWh, down about 50 cents on the week.

With the close of 2017 compliance year approaching, class I REC prices in several New England states had been losing ground in recent weeks.

"My understanding is that this is a continuation of a trend we've seen in the last year or two, in which front year vintages are well-supplied, and drop off dramatically ahead of compliance. NEPOOL is unique in that compliance RECs can only be banked by entities with [renewable portfolio standard] obligations, i.e. if a generator or speculator is stuck holding them past their current compliance window, they are rendered value-less," according to one broker.

"Last year, we have seen a similar step down in pricing for the front vintages around this time of the year. Aside from the technical factors, the fundamentals remain bearish for 2018 but the market should see some recovery in 2019/2020," according to another broker.

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