In Sweden prices for electricity certificates slipped further to around SEK 180. The market is long on certificates, largely due to the unlimited banking rule within the Swedish system, which allows retailers to buy certificates and sit on them for an unlimited period, using them for compliance in any year.
In the United States, interest in the North Eastern renewable energy certificate (REC) markets is strong. RECs eligible for the Massachusetts renewables portfolio standard (RPS) remain in particularly short supply for the 2005 period and pricing continues to flirt with the price cap, with bids currently $50 and offers running at $52. Interest has grown in New Jersey RECs, the result of increasing speculation that an extension of an aggressive renewable portfolio standard will be announced. Connecticut Class 1 REC prices have fallen steeply with some aggressive sellers, particularly short sellers, active in a market with a few patient buyers. Prices had been around $35/REC as recently as July, but in November and December they were trading at around just $3-6/REC. With modifications to the authorising legislation and regulatory implementation, it is now seems clear a large influx of imported RECs will not occur.
Prices for generic RECs from facilities around the US without a local RPS have fallen overall, as increased installations and awareness of REC value among existing generators continues to spread. While growing at a rapid rate, voluntary buyers, who are the usual off-taker for these RECs, have not kept pace with supply.