RGGI CO2 auction generates $105.9m

An Eastern regional auction of carbon dioxide (CO2) allowances on March 13 raised $105.9m and saw a clearing price of $2.80. This marks the 19th auction for the Greenhouse Gas Initiative (RGGI).

Roughly 37.83m CO2 allowances were sold at the auction, at a clearing price of $2.80, according to a statement from RGGI.

The auction generated $105.9m for reinvestment by the RGGI states in a variety of consumer benefit initiatives, including energy efficiency, renewable energy, direct bill assistance, greenhouse gas abatement, and climate change adaptation programs.

Allowances sold represent 100% of the allowances offered for sale by the nine states. Bids for the CO2 allowances ranged from $1.98 to $5.03 per allowance.

There were 42 bidders in the latest auction and more than two-thirds of them were compliance entities and their affiliates, according to RGGI.

Since the RGGI auctions commenced in 2008, they have generated more than $1.22bn in proceeds. The next RGGI auction is scheduled June 5.

There are nine Northeastern and Mid-Atlantic states participating in RGGI. There were 10 before New Jersey withdrew last year.

On Feb. 7, after a comprehensive two-year program review, the RGGI states released an Updated Model Rule and Program Review Recommendations Summary. The Updated Model Rule will guide the RGGI states as they follow state-specific statutory and regulatory processes to propose updates to their CO2 Budget Trading Programs.

RGGI’s market monitor recently released a report on the secondary market for CO2 allowances.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.