Connecticut renewable energy credit prices declined several dollars, while solar and nonsolar REC markets in neighboring New Jersey were varied.
During the week ended Feb. 23, Connecticut class I RECs for 2017 were priced at an average of $7.75/MWh with class I RECs for 2018 marked at an index of $18.96/MWh, dropping $3.50 and more than $6, respectively.
Connecticut REC prices slumped in value even after the Connecticut Department of Energy and Environmental Protection, or DEEP, recently released the long-awaited comprehensive energy strategy, or CES, which calls for doubling the state's class I renewable portfolio standard, or RPS, target from 20% by 2020 to 40% by 2030.
To reach this target, the DEEP recommends increasing the class I RPS requirement by 2% each year between 2020 and 2030. The 40% target is higher than the initial 30% target called for in the draft CES. The proposal acknowledges the likelihood of increased REC prices due to the proposed RPS increase and therefore recommends that the state lower the alternative compliance payment, which is the price that utilities must pay if they fail to meet renewable targets.
The CES plan also detailed sustainable ways to deploy and expand cost-effective distributed generation and support the growth of energy efficiency through sustainable and equitable funding.
Following modest losses the week before, New Jersey solar markets were flat to higher during the week ended Feb. 23. The New Jersey energy year 2018 SREC market was eyed at an index of $221.75/MWh, up 42 cents week over week. The Garden State energy year 2019 market came in at an average again of $223.00/MWh, steady on the week.
Meanwhile, New Jersey class I REC prices for 2018 and 2019 ran mixed during the week ended Feb. 23. New Jersey vintage 2018 class I REC prices were down 4 cents to an index at $5.56/MWh while vintage 2019 class I RECs rose 7 cents to an average at $5.90/MWh.
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