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Demand Falls In First 2017 California-Quebec Cap-and-Trade Auction, But Set To Rise Through 2020

Demand fell for carbon allowances in the California-Quebec cap-and-trade program’s first auction of 2017, continuing a string of uneven results over the last year after auctions sold out for the program’s first three years. Much of explanation for this reversal revolves around legal uncertainty regarding the future of the program, however new quantitative analysis also points to emissions allowance oversupply.

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Trending Topics - Getting the Most out of Grid Modernization

States and utilities around the country are considering new utility investments in modernizing the grid. As utilities come to the table for grid modernization funds in many states, regulators and stakeholders should start planning now to get ahead of the process and generate the most benefits from those investments. APP experts Sonia Aggarwal and Mike O’Boyle have laid out five steps utility regulators can take to ensure customers reap the benefits promised by a modern grid.

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Recalibrating California's Cap-and-Trade Program To Account For Oversupply

For the first time last year, a portion of the current vintage allowances offered in one of the California-Quebec cap-and-trade program’s quarterly auctions went unsold. This report provides a quantitative analysis of the supply and demand for carbon allowances in the linked California-Quebec cap-and-trade program to help discern the role that temporary or systemic oversupply may be playing.

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Carbon market slump could last for a while — report

A new analysis of California's carbon market finds that low demand could continue for the next year and a half, but eventually rebound to the tune of $8 billion through 2020. Based on state data on supply and demand, Chris Busch of advisory firm Energy Innovation said last week that revenues might stay well below their full potential through mid-2018, then rise to 70 to 80 percent through 2020, when the cap ratchets down further.

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