20,941,000 carbon dioxide (CO2) allowances were sold in the Regional Greenhouse Gas Initiative’s (RGGI) 16th quarterly auction on Wednesday, announced the nine Northeastern and Mid-Atlantic States participating in the second RGGI control period. The $40.4 million in funds generated by the auction will be reinvested by the RGGI States in energy efficiency, clean and renewable energy, direct bill assistance, and other consumer benefit programs across the region.
Bids for the CO2 allowances ranged from $1.93 to $6.14 per allowance, with a clearing price of $1.93, the minimum reserve price for the auction. Allowances sold represent 57 percent of the 36,426,008 allowances offered for sale by the nine states.
According to the independent market monitor’s report, electricity generators and their corporate affiliates have won 87 percent of CO2 allowances sold in RGGI auctions since 2008. Additional details are available in the Market Monitor Report for Auction 16.
The RGGI states continue to analyze electricity generation and emissions trends as part of the comprehensive 2012 program review. CO2 emissions in the ten-state region were 33 percent below the annual pollution cap of 188 million short tons during the first control period.
The next RGGI auction is scheduled for September 5, 2012.
| Auction 16 Results At-A-Glance [CORRECTED] | |
| Auction Date | June 6, 2012 |
| Allowances Offered for Sale | 36,426,008 |
| Allowances Sold | 20,941,000 |
| Ratio of Bids to Supply | 0.57x |
| Clearing Price | $1.93 |
| Reserve Price | $1.93 |
| Proceeds from Auction 16 | $40,416,130.00 |
| Total Cumulative Proceeds (All Auctions) | $1,034,168,168.19 |
| Number of Bidders in Auction 16 | 24 |
| Percent of Allowances Purchased by Compliance Entities & their Corporate Affiliates in Auction 16 | 95% |
More data
The Northeast and Mid-Atlantic states participating in the second RGGI control period (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) have implemented the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at 165 million short tons per year through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.
About the Regional Greenhouse Gas Initiative
The Northeast and Mid-Atlantic states participating in the second RGGI control period (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) have implemented the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at 165 million short tons per year through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.
RGGI is composed of individual CO2 budget trading programs in each state, based on each state’s independent legal authority. A CO2 allowance represents a limited authorization to emit one short ton of CO2, as issued by a respective state. A regulated power plant must hold CO2 allowances equal to its emissions to demonstrate compliance at the end of each three-year control period. RGGI’s second control period began on January 1, 2012 and extends through December 31, 2014. CO2 allowances issued by any state are usable across all state programs, so that the individual state CO2 budget trading programs, in aggregate, form one regional compliance market for CO2 emissions. For more information.
About Regional Greenhouse Gas Initiative, Inc.
Regional Greenhouse Gas Initiative, Inc. (RGGI, Inc.) was created to provide technical and administrative services to the states participating in the Regional Greenhouse Gas Initiative. RGGI, Inc. is a 501(c)(3) nonprofit organization. For more information.
The RGGI auctions are administered by RGGI, Inc. and run on an on-line platform provided by World Energy Solutions, Inc.
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