Financial and industry data, research and news provider S&P Global Market Intelligence announced today the launch of its new its Renewable Energy Credit RECs Price Forecast dataset, aiming to enable market participants to analyze and assess the value of wholesale renewable electricity in the U.S. The new tool will form part of S&P Global Market Intelligence’s Power Forecast series.

RECs are instruments through which renewable energy generation and use claims are substantiated in the U.S. renewable energy market. According to the EPA, RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource. The instruments are often used by companies to offset their carbon emissions, or to reach 100% renewable sources.

S&P Global Market Intelligence stated that its new REC price forecast will provide insight into new revenue streams for energy facilities that are looking to be compensated for the value of their renewable energy. Additionally, the REC Pricing Forecast will enable market participants to estimate environmental compliance costs to utilities that rely heavily on fossil fuels, identify which market each green asset sells into and tie that identification to a REC projection, and project financial impacts of regulatory changes and renewable power generation mandates.

Steve Piper, Research Director for Energy at S&P Global Market Intelligence, said:

“As global energy markets continue to shift their reliance on fossil fuels to alternative sources, organizations may look to RECs to help comply with increasing green energy mandates. With more RECs are being purchased, the demand and production of renewable energy increases. This new pricing forecast will provide differentiated insights into the value of renewable energy and give investors participating in this market the ability to forecast the green premium for energy transition, helping them make informed-decisions.”