Dive Brief:

• The price of alternative energy credits (AEC) in Pennsylvania has doubled this year, Power Source reports, after state regulators predicted the credits would be in short supply.
• The price of a Tier 1 energy credit reached $9.78 last year, essentially doubling since 2008, and are now trading close to $20.
• The price of solar credits, however, have been falling from their high of $325 in 2010, and last year sat just below $95.

Dive Insight:

The price of Tier 1 AECs in Pennsylvania, including wind, geothermal and landfill gas, has been steadily increasing and this year has doubled. And the Post-Gazette said this may be enough to incentivize new development.

“I know that new projects have factored in the credit as part of the cash flow,” Ed Johnstonbaugh, a renewable energy educator with Penn State Extension Westmoreland, told the paper. He also believes the prices could continue to rise.

Pennsylvania law requires that Tier 1 resources make up 8% of a utility's energy supply by 2021.

In February, Rep. Greg Vitali a measure to increase the state's Tier I requirements to 15% by 2023. "Pennsylvania has a duty to work toward carbon neutrality because it produces almost 1 percent of the world’s greenhouse gases," Vitali said.

Joanne Kilgour, director of the Sierra Club Pennsylvania Chapter, said increasing the Alternative Energy Portfolio Standard to require electric companies to use more power generated by renewable sources would increase jobs and help the environment.
 
"Strengthening our Alternative Energy Portfolio Standard is not just a step toward securing healthier communities in Pennsylvania, but will make our energy sector more competitive in the region's economy," Kilgour said.