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How The RET Review Is Hurting REC prices


climatespectator.com.au, 18 September 2012:

Both AGL Energy and the REC Agents Association have separately released analysis which illustrates how prices for Renewable Energy Certificates – both large- (LGCs) and small-scale (STCs) are abnormally low. 

This appears to suggest that market players apply a discount to the value of RECs, beyond what is dictated by the economics of supply and demand, to account for a perceived risk that the rules around the RET will be changed. Reviewing this legislation every two years is clearly not helping investor confidence.

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