The increase in UK power prices as a whole has also made an impact, with prices per megawatt hour of renewable generation over the third and fourth periods rising. Contracts for bundled transactions, whereby certificates are sold together with the underlying physical power, levy exemption certificates and other grid benefits, have tipped over £70/MWh.
In the US, certificate trading in the New England and Pennsylvania-Jersey-Maryland power pool market has been lacklustre this summer. In contrast, pricing in Massachusetts and Connecticut class I certificates remains firm as supply appears to be scarce for the 2004 compliance period. Trades have been reported in the mid to upper $40 range, nearing the cap prices for each state of $51.40 and $55, respectively. In Connecticut, the markets have softened and the spreads have widened for the 2005 period and beyond, due to the uncertainty caused by a regulatory review of importation rules for renewable energy certificates. As it stands, there are no physical delivery requirements in order to import the certificates into the Connecticut program.