Regional Pricing Outlook for Wind Energy and RECs

IHS EER has modeled for each region, based on our regionally differentiated assumptions, a levelized real required price for new wind projects installed each year through 2021 as well as a levelized required renewable energy credit (REC) price. Key trends in this Data Insight include:

• Western MISO and SPP are expected to have the lowest required prices in the country, while New York and the Pacific Northwest are expected to have the highest.
• High power prices in California and New England makes those regions more attractive from a required REC perspective, while low prices make Western PJM and Eastern MISO less attractive.
• Western MISO and SPP have the lowest required prices for RECs, driven by low capital costs and excellent wind resources, while the Pacific Northwest's high capital costs and low prices make its RECs expensive.
• On the margins, wind energy costs with the PTC incentive could fall below wholesale power prices in some regions between 2013 and 2015.