Green Markets

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REC price mellows: $35.75 – small drop from highs reached two weeks ago; dramatic rise after Fed opposition announcement to increase MRET

Posted by gmarkets on 25 September, 2007

On the back of a big proceeding week, the REC market mellowed last week, according to The Green Room.

Recs price

Spot activity: A number of trades were reported in the spot variety: several of them were 10K or above, but all of them took place at $35.75. This level seemed to hit the mark for buyers and sellers and represents only a small drop form the highs reached two weeks ago.

REC price bounce on ALP MRET pledge: The graph above depicts what REC sellers may be referring to as ‘superb September’. After prices remained steady for several months (between $31.00-$32.00), the start of September saw a dramatic increase after a Federal opposition announcement to increase MRET. Though not an actual policy announcement and instead an indication of what will be announced when the ‘real’ election campaign begins, it appeared enough to brighten the outlook in the market.

Impact as Govt mulls green energy target: The increase in price appears to also have come from the Coalition government’s consideration of a Clean Energy Target which would encompass technologies which emit up to 200 Kilograms of CO2 per MWh (More on this next week). The ensuing price increases more than offset the plunge that occurred in late June and according to a broad set of opinions further increases may be on the way.

Reference: The Green Room, Edition 121, 24 September 2007

Erisk Net, 25/9/2007

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