RGGI Auction 62 Clears at CCR Trigger of $14.88 | Emissions Watch Blog
Clearing Price of $14.88/ton Marks a 7% Increase Over Previous Auction
The most recent RGGI quarterly auction (Auction 62) was held on December 6, 2023. The clearing price was $14.88/ton, 7.4% higher than the clearing price of $13.85/ton on September 6, 2023 (see Figure 1). Auction 62 represents the third consecutive auction with increasing clearing prices, which follows three prior consecutive auctions with decreasing clearing prices.
The clearing price reached the 2023 Cost Containment Reserve (CCR) trigger price of $14.88/ton.[1] The CCR provision is a mechanism that allows for the release of additional allowances when auction prices exceed the established price threshold (the trigger price). This is the first time the clearing price has hit the CCR trigger price since December 2021.
[1] The CCR trigger price increases by 7 percent each year.
Auction 62 Specifics
Bidding interest was strong in Auction 62 and 27,656,000 allowances were sold. Sixty entities submitted bids and the quantity of allowances for which bids were submitted was 2.8 times the available supply. Fifty bidders secured allowances, with ten bidders purchasing 64% of all the available allowances. Figure 2 shows the breakdown of allowances sold to each of the successful bidders.
The Market Monitor report for Auction 62 indicated that following this auction, 65% of allowances in circulation were held by compliance entities and 35% were held by non-compliance entities. Figure 3 shows the percentage of allowances sold to compliance entities versus investors. In this auction, compliance entities purchased more allowances than investors (67% versus 33%). This is more than the last auction, in which compliance entities purchased 64% of allowances.
Learn More About ESAI Power’s RGGI Coverage
ESAI provides a detailed analysis of the RGGI market, including an allowance price forecast, emissions projections, and updates on relevant policy and regulatory developments. For more information on how to access this information, contact Tom Bausemer at [email protected]
Learn About Emissions Watch
The Emissions WatchTM quarterly publication contains ESAI Power’s outlooks and views on the emissions markets. ESAI provides regular updates and analysis on developments in the SO2, NOx and CO2 emissions markets as well as price forecasts for state and regional markets. In addition, regular updates are provided on the RGGI program as well as other state-specific emissions programs.
Learn About Energy Watch Quarterly
Energy Watch QuarterlyTM provides a quarterly analysis of market and policy issues affecting energy pricing dynamics over the next 10-year period for both the power and natural gas sectors. This analysis includes forecasts of pool-wide and zonal energy prices in New England, New York, and PJM, including forecasts of fuel inputs. Supporting assumptions are provided in each quarterly report.
Contact Us
Please contact us for more information about our research product publications or our consulting services.
