Market Report | April 2023

REGO 

  • After the end of the Compliance Period, REGOs price experienced a gradual sell-off, which accelerated towards the end of April when OVO announced that they wouldn’t be using REGOs anymore. 
  • The market experts have since shrugged off the OVO announcement as “being a cynical cost-saving exercise”. 
  • GoOs rallied at the end of the month, driving REGOs higher as buyers sold GoOs and bought REGOs, thus making back some of the early month losses.
  • CP 22 reamins steady at around £9/REGO for W/S/H and £7.50-£8 for Biomass.
  • It remains to be seen to what extent the GoO prices will continue to affect the REGO market, given the ban on GoO imports into the UK. 
  • Most buyers are now looking forward to the current CP and are looking to buy CP22 REGOs, with the generators releasing limited forward volumes onto the market. 

“After a quiet March, April has been a roller coaster ride!”

Mike Ridler, Head of Green Markets at C-Zero
Mike Ridler
Find out about the team

“The Waste market has stalled with buyers only interested in Crop certificates. Will the Waste/Crop spread narrow again to just a few £s? “

Mike Ridler

RGGO

  • Waste prices have remained stagnant, with sellers still holding out for low/mid £30s and the few buyers that there are bidding in the high £20s. 
  • Even ISCC Waste Certs that have shown more resilience than their non-certified cousins have experienced a sell-off, with bids below £40/MWh currently. 
  • Crop is still in demand, with pricing steadily increasing, but the waste/crop spread is narrowing, which might dampen further increases as buyers switch back to Waste. 

“Flat month on prices and traded volume.”

Bruce Brown

Bruce Brown

Head of Client Partnership at C-Zero
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RTFC market lacking liquidity and trades

  • April was a very flat month for RTFC prices, with 2022 certs still trading at a premium to 2023s but with very little volatility on both sides.
  • FAME, RME and UCOME prices remain at multi-year lows, combined with some steep dips, causing the blending prices to subdue ticket prices for both compliance years consistently.
  • RTFC for waste-fed biomethane at current prices worth just over 5.4p/KWh for 2023 certificates, a 2.4p premium over a 3p RHI 
  • Bids and offers were hard to come by where there were any, and the spreads were too large to close. There was additional inertia to trading where traders became nervous about fast and aggressive dips in blending prices.
  • Get in touch for up-to-date pricing and both bid/offers on RTFC. 
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