REC Market Update

01 Mar 2007Archived News Climate Change Matters

The REC market has had a pricing recovery in the past three weeks. RECs are now trading at around $27.50, up $10 from January prices. This means that GreenPower prices are likely to increase and $30/MWh is likely to be the new minimum level.

The price recovery is due to a general market consensus that:

  • Government policy is heading in a greener direction and driving up demand;
  • The large hydros are not expected to supply as much as they have previously due to the extended drought; and
  • State based REC targets will absorb supply from new generation.

Even at $30/MWh, the cost of GreenPower is still much lower than it has been in the past, so if you are considering purchasing GreenPower it is still a good time to do so.

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