RGGI Releases Report on Seventh Auction
2010 sells for $2.07, while 2013 sell at reserve price of $1.86 in the 7th RGGI auction
All of the 40 million vintage 2010 allowances were sold at the auction for the clearing price of $2.07. The vintage 2010 allowances closed yesterday at $2.12. By comparison, the last quarterly RGGI auction in December cleared at $2.05.
Approximately 2 million vintage 2013 allowances sold at the auction for the clearing price of $1.86. Only 98% of the 2013 vintage allowances, which can be used for compliance in the second three-year control period (2012-2014), sold at auction. (See table 1 below.)
The vintage 2010 auction saw a decrease in participation relative to the last auction with 51 bidders compared to 62 bidders in December. Bids were submitted for 2.3 times the available supply. The market is still expected to be oversupplied by approximately 30-40 million allowances compared to actual emissions, this price was expected by the market.
As with the previous auction, non-compliance entities did not participate in the Vintage 2013 portion of the auction. The auction cleared right at the $1.86 reserve price, which obviously indicates minimal demand for the allowances. Furthermore, only 2 million of the 2.1 million allowances on auction for the 2013 vintage were sold.
| Auction 7 Stats | Vintage 2010 | Vintage 2013 |
|---|---|---|
| Bidders | 51 | 9 |
| Percent Compliance | 82% | 100% |
| Clearing Price | $2.07 | $1.86 |
> July 2010 (2)
> June 2010 (1)
> May 2010 (2)
> April 2010 (1)
> March 2010 (2)
> February 2010 (1)
> January 2010 (4)
> December 2009 (3)