STC Market Update – 16th March 2020

Last week saw the release of the 2020 small-scale technology percentage (STP). The figure has been set at 24.40% which equates to approximately 42.6 million STC’s that need to be surrendered by electricity retailers in order to meet their SRES obligations. This figure was higher than expected and the resulting extra demand pushed the price higher after the announcement.

The STC market has been relatively stable over the past month with the spot price hovering around the $38.00 mark. Following the announcement the price jumped to a high of $38.80 and the price is likely to remain strong throughout the 1st quarter surrender period. The forwards however didn’t rise quite as much with large volumes being traded at $35.55.

Certificate creations have been consistantly high with over 800k being created last week. It is estimated that between 700-750k are required to fulfill 2020 weekly surrender requirements.

The number of STC’s listed on the clearing house currently sits at 307,884. It is possible the clearing house may come into effect later in the year. A link to the STC clearing house transfer list can be found here.

Our latest pricing for both registered and non-registered STC’s can be found here.