Connecticut RPS Bill 450: REC Class 1 & 3, CHP

Karbone Market Research Briefs

Pricing in the CT Class 1 REC markets have retreated on the back of impending policy developments. Connecticut Senate Bill (SB) 450 contains a proposal supporting the development of Micro-Grids, providing for Combined Heat and Power (CHP) generation to qualify as Class 1 Renewable Energy Credits (RECs). Micro-Grids are defined as small-scale localized grids located in the state of CT. CHP is currently classified as a CT Class 3 REC. Ahead of this news, Class 3 RECs were well offered, with value pegged just above the market floor of $10.