On August 11, 2017, Massachusetts regulators filed the proposed final version of CMR 7.75, the Clean Energy Standard (CES), a plan to cut state GHG emissions by 80% of their 1990 levels by 2050. To achieve this aggressive target, the state is going to rely on the procurement of long-term contracts to import hydropower from Canada, as well as the development of more renewable resources, such as wind and solar. Ultimately, however, whether this new mandate can achieve its compliance targets is going to require not only committed project development capital, but also large investments in new transmission lines.
There has been continued year-on-year supply growth in the NEPOOL Class I REC market across all states and almost all technologies. The following report explores the resulting supply and demand fundamentals and analyzes the pricing trends and legislative impact on this particular market.
The NEPOOL Class I market has been characterized by strong development that enabled the states to meet them obligation and bank additional RECs. However, Massachusetts (MA) and Connecticut (CT) have lagged with in state development.