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Conn., Md. renewable energy credit markets extend gains

U.S. markets for renewable energy credits chopped around again heading into the end of October, with ongoing gains seen in Maryland and Connecticut again due to active buying.

During the week ended Oct. 24., Connecticut vintage 2019 class I RECs were up more than $1 from the week before to an average of $39.67/MWh. Vintage 2020 class I RECs in the state advanced more than $3 on the week to an index at $45.00/MWh.

Since the beginning of the year, New England REC prices have jumped in value amid stronger demand from increased renewable portfolio standard requirements, the implementation of the Massachusetts Clean Energy Standard and a general stagnation of supply, analysts have said. A high degree of REC cross-qualification among the New England states has led to somewhat of a price convergence in most markets across the region.

In the mid-Atlantic, Maryland tier I REC prices advanced for another week, supported by continued interest from the buy side. Maryland vintage 2019 tier I RECs posted an average at $7.56/MWh, up 53 cents on the week, while vintage 2020 tier I RECs were priced at $8.03/MWh, gaining 74 cents.

Maryland Gov. Larry Hogan's administration recently issued a draft emissions reduction plan that calls for the state to find a "technology-neutral" way to run 100% on clean electricity by 2040 by building on its existing RPS. The draft plan in Maryland calls for the increased use of hydropower, among other things to help meet the new goal. Maryland's current renewable generation resource goal is 50% by 2030.

The neighboring New Jersey class I REC markets rebounded during the review week. Vintage 2019 class I RECs in the Garden State were up 89 cents to $7.93/MWh, while vintage 2020 class I RECs in New Jersey rose more than $1 week on week to $8.06/MWh.

Solar RECs in the active New Jersey market flattened out after a flurry earlier in the month. During the week ended Oct. 24, New Jersey energy year 2019 SRECs came in again at an average of $231.92/MWh, while energy year 2020 SRECs were flat at an index of $234.33/MWh.

The deadline for yearly compliance reports for New Jersey class I and class II RECs was Oct. 1. The deadline for energy year 2019 compliance reports for the solar market in the Garden State is Dec. 1.

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