ROC price collapse?

[shumungus]

Have been hearing murmurs that the ROC price is about to poop itself as the big purchasers of these in industry aren't going to need them so much with the large downturn. Does anyone know anything about it?

 

[Digester Man]

Have been hearing murmurs that the ROC price is about to poop itself as the big purchasers of these in industry aren't going to need them so much with the large downturn. Does anyone know anything about it?

Hadn’t heard that now. The purchasers of ROCs are electricity suppliers, it would depend on the amount of electricity they continue to sell during the downturn vs the amount of renewable electricity they can supply; the difference requiring them to either buy ROC’s or else pay the buy out fee.

Unless there was going to be significantly less demand for electricity, which I couldn’t quantity (maybe someone else can?) then I can’t see it directly affecting ROCs.

Maybe someone else can offer more advice? Be v interested to find out

 

[How much]

See the attached link below for some additional info or the world economic forums commentary, on UK usage they state demand has dropped 15 to 20 % they are saying that usage is in line with weekends or bank holidays and levels of consumption are at a level that they where in 1975 !!
I would imagine it has dropped further since then with the building industry and other business slowing down since last week

its the bottom blue line its interesting that if you look from Tuesday to Friday it drooped day by day but Friday Saturday and Sunday are almost the same

https://www.weforum.org/agenda/2020...coronavirus-has-turned-weekdays-into-weekends

 

[GreenerGrass]

Does the ROC price not have a base put in it by the Govt ROC buyout price? Just sold some in the auction and price seems stable.

 

[it's not over]

Roc on recycle and buyout is set for 12 months in april.its index linked I believe as it increases each year. The buyout is paid in nov. It covers rics in the previous year so some buyout is actually 18 months in waiting. If rocs are good the buyout us a good price too. If Aug production is good and combined with a buyout payout in nov, nov can be the biggest month of the year as far as the financials are concerned