The average traded price for ROCs of vintage CP2 (the second compliance period) has been around £46.00 per certificate. This is approximately £2 lower than CP2 ROC prices shown in the market prior to the TXU fiasco -- and over £10 away from the theoretical value of the recycle value for the second period. To this end, innovative structures whereby the risk and price reward can be shared between buyer and seller remain in the marketplace.
In the US markets with green certificate mandates there has been little trading activity of renewable energy certificates (RECs) generated in 2003. This is largely due to a recent ruling by the US Federal Energy Regulatory Commission which passed decisions on ownership of RECs from qualifying facilities under Public Utility Regulatory Policy Act contracts to state agencies. This has created ownership uncertainty and a conservative approach towards trading the RECs associated with these facilities. In the Pennsylvania-Jersey-Massachusetts grid region, where trading is driven by New Jersey's interim Renewables Portfolio Standard (RPS), trading has been even slower due to the delayed development of the REC register. Participants are also awaiting the final draft of the RPS. A supply shortage in the New England Power Pool has made an impact. Supply shortage in the forward markets means prices for certificates of Vintage 04 in the Massachusetts and Connecticut Class I markets have been rallying close to the price cap: $50.00 and $55.00, respectively.