780,000 California carbon allowances trade
In another busy week of trading 780,000 California carbon allowances for delivery in 2013 exchanged hands.
Over 3 million California carbon allowances have traded since Governor Jerry Brown signed off on the proposed market linkage with Quebec.
The Canadian province is expected to add liquidity to the market, however its aggressive target to reduce emissions to 20% below 1990 levels by 2020 suggests that it may be a net purchaser of California carbon allowances and carbon credits.
Prices for 2013 California carbon allowances remained steady, closing the week at $14.35.
Prices have hovered in the $14-$15 range as market participants await news about the San Onofre nuclear power plant that was shutdown early last year after the discovery of excessive wear on the generator pipes.
The nuclear plant provided roughly 8% of the electricity in the state with no resulting emissions.
Energy generation has been increased at other fossil-fuel burning facilities, increasing overall emissions and pushing electric utilities closer to the state mandated cap.
The prolonged closure of the San Onofre plant will require its owner, Southern California Edison, to buy more California carbon allowances than it originally thought.
On May 16, the third California carbon allowance auction will take place, where 14.5 million 2013 CCAs will be offered.
February’s California carbon allowance auction saw all 12.9 million 2013 CCAs clear at $13.62, helping to raise over $223 million in revenue to fund other emission reduction projects in the state.