On Thursday, 3/28/2013, SRECTrade recorded a webinar covering the MD and DC SREC markets. The webinar can be viewed by clicking the image below. A .pdf version of the slides is available here. For questions about selling or buying SRECs in the MD or DC SREC markets please contact us at 877-466-4606 or customerservice@srectrade.com.
SRECTrade hosted a webinar on Thursday, 3/21/2013 covering the 2013 SRECDelaware Program. The webinar reviewed the basic rules of the Program as well as the application process. The webinar recording can be viewed by clicking this link.
A webinar covering the 2013 Delaware SREC Procurement Program (SRECDelaware) will be held at 3 pm ET on Thursday, 3/21/2013. To register for the webinar please click here.
The webinar will be recorded and posted on www.srecdelaware.com for reference.
The 2013 Delaware SREC Procurement Program will begin to accept new applications starting March 25, 2013. The application window will close on April 12, 2013 and results will be announced on April 20, 2013.
Key facts about the 2013 SREC Procurement Program:
| New Systems – final interconnection on or after April 2nd, 2012 | ||
| Tier | Nameplate Rating – (DC at STC) | SRECs in Tier |
| N-1 | Less than or equal to 30 kW | 1,200 |
| N-2 | Greater than 30 kW but less than or equal to 200 kW | 1,400 |
| N-3 | Greater than 200 kW but less than or equal to 2 MW | 1,400 |
| Existing Systems – final interconnection before April 2nd, 2012 | ||
| Tier | Nameplate Rating – (DC at STC) | SRECs in Tier |
| E-1 | Less than or equal to 30 kW | 1,500 |
| E-2 | Greater than 30 kW but less than or equal to 2 MW | 1,500 |
SRECTrade will host a webinar covering the Maryland and Washington, DC SREC markets on Thursday, 3/28 at 3 pm ET. As with previous state market focused webinars, SRECTrade will cover MD and DC specific market trends and capacity projections. Additionally, we will address options clients have for selling SRECs through SRECTrade.
Register here: https://srectrade.clickwebinar.com/MD_and_DC_SREC_Market_Webinar
TweetSRECTrade’s March 2013 SREC Auction closed on 2/28/13. Below are the clearing prices by vintage across the markets covered in the auction.
| March SREC Prices | SREC Vintage Year | ||
| State | 2011 | 2012 | 2013* |
| Delaware | – | – | – |
| Maryland | – | $135.00 | $128.00 |
| Massachusetts | – | $220.00 | – |
| New Jersey | $100.00 | $105.56 | $112.00 |
| Ohio In-State | – | – | $40.00 |
| Ohio Out-of-State | – | – | $5.99 |
| Pennsylvania | – | – | $10.00 |
| Washington, DC | – | $386.12 | $381.12 |
Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage SRECs are generated beginning in June of 2012.
Green text represents a price increase over the last auction clearing price for that vintage, red text represents a decrease.
“-” reflects no sale, which would result if there were no SRECs available for sale in that vintage or there were no matching bids and offers to determine a clearing price.
For detailed analysis of SREC market prices and trends please subscribe to the SREC Market Monitor, a joint publication of Greentech Media’s GTM Research and SRECTrade.
State Market Observations:
Delaware: No DE SRECs transacted in the March auction. Most demand for DE SRECs will be through the DE SEU SREC Procurement Program solicitations. For the latest information on the upcoming 2013 solicitation click here: 2013 DE Program Announcement.
Maryland: MD2012 and MD2013 SRECs transacted at $135/SREC and $128/SREC, respectively, in the March auction. While MD12s in the over the counter (OTC) market transacted higher in the middle of the month, demand subsided at the end of the month. Compliance obligations for 2012 are currently being finalized.
Massachusetts: MA2012 SRECs traded at $220/SREC. OTC transactions have trended at the same levels between $220 and $230/SREC. SREC issuance volumes in Q1-Q3 2012 and October – December 2012 MWhs reported to the MA CEC demonstrate that 2012’s requirements have been met. The next SREC issuance for Q4 2012 generation will fall on April 15, 2013. The 2012 market will be oversupplied by approximately 50% of this year’s compliance obligation. On 2/27/13, the DOER announced proposed rule changes.
New Jersey: NJ2012 and NJ2013 SRECs traded up to $105.56 and $112/SREC, respectively. The NJ Office of Clean Energy announced total installed capacity through January 2013 was estimated to be 973.4 MW, a monthly increase of approximately 17.4 MW. Over the past few days OTC transactions have trended down to come inline with the March auction pricing. New Jersey’s regulated utilities will be hosting an auction for upwards of 60,000 NJ2013 SRECs on March 19. This auction will decrease demand and may result in continued downward pressure on SREC pricing.
Ohio: OH2013 Sited SRECs transacted at $40/SREC and OH2013 Adjacent SRECs traded at $5.99/SREC. There was no sale of the 2012 vintages indicating the lack of demand and oversupply in the market. 2013 is expected to continue to experience oversupply and minimal demand. Most demand for OH Sited SRECs has been fulfilled through long term agreements with large utility scale projects or through long term RFPs with the state’s regulated utilities. 2012 compliance obligations are currently being finalized.
Pennsylvania: PA2013 SRECs traded at $10/SREC, in line with the February 2013 auction. OTC transactions have been pricing slightly higher. SREC oversupply continues to impact PA’s market.
Washington, DC: The 2010 and 2012 vintages increased to $355 and $386.12/SREC, respectively. Additionally, DC2013 SRECs traded at $381.12. Compliance entities are currently finalizing obligations for 2012. It is expected the market will continue to experience under supply into the 2013 trading year.
For historical auction pricing please see this link. The next SRECTrade auction closes on Monday, April 1 at 5 p.m. ET and will cover PJM Solar RECs. The next MA Solar REC auction will close on Monday, April 15 after the Q4 2012 NEPOOL GIS issuance. Click here to sign in and place an order.
TweetSRECTrade SREC Markets Report: February 2013
The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade currently serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.
A more detailed analysis of supply, demand and price trends in the SREC markets can be found in the SREC Market Monitor, a joint-venture between SRECTrade and Greentech Media’s GTM Research.
A PDF copy of this table can be found here.
***NJ Update: Installed Capacity Surpasses 1 GW of Solar*** Through February 2013 NJ installed capacity reached approximately 1,008.4 MW of installed solar capacity; a 35 MW increase over the prior month. The number in the table above represents all capacity registered in GATS as of the date noted. The remaining capacity will be registered and receive SREC credit from the date of project interconnection.
Overview of PJM Eligible Systems
As of March 11, 2013 there were 31,932 solar PV and 663 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 213 (0.65%) have a nameplate capacity of 1 megawatt or greater. Twenty three of these projects have a nameplate capacity of 5 MW or greater. New Jersey continues to host most of the larger scale facilities, claiming home to 65.2% of the projects, 15 of 23 facilities, that are equal to or greater than 5 MW. The three largest projects are a 29.1 MW FirstSolar project in MD, the 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.
Massachusetts DOER Qualified Projects
As of March 13, 2013, there were 4,962 MA DOER qualified solar projects; 4,945 operational and 17 not operational. Total qualified capacity is 214.6 MW, 195.4 MW of which is operational and 19.2 MW not operational. Electricity suppliers providing power to the state need to acquire approximately 73,400 SRECs in 2012. According to NEPOOL GIS, 91,684 Q1 – Q3 2012 SRECs have been issued for the year to date. Additionally, 25,750 MWhs were reported to the MassCEC production tracking system for the 3 months covering October-December 2012.
How to Interpret This Table
The tables above demonstrate the capacity breakout by state. Note, that for all PJM GATS registered projects, each state includes all projects certified to sell into that state. State RPS programs that allow for systems sited in other states to participate have been broken up by systems sited in-state and out-of-state. Additional detail has been provided to demonstrate the total capacity of systems only certified for one specific state market versus being certified for multiple state markets. For example, PA includes projects only certified to sell into the PA SREC market, broken out by in-state and out-of-state systems, as well as projects that are also certified to sell into PA and Other State markets broken out by in state and out of state systems (i.e. OH, DC, MD, DE, NJ). PA Out-of-State includes systems sited in states with their own state SREC market (i.e. DE) as well as systems sited in states that have no SREC market (i.e. VA). Also, it is important to note that the Current Capacity represents the total megawatts eligible to produce and sell SRECs as of the noted date, while the Estimated Required Capacity – Current and Next Reporting Year represents the estimated number of MW that need to be online on average throughout the reporting period to meet the RPS requirement within each state with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. Additionally, the data presented above does not include projects that are in the pipeline or currently going through the registration process in each state program. This data represents specifically the projects that have been approved for the corresponding state SREC markets as of the dates noted.
Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” updated 10/1/12. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.5% growth rate per forecast year. The state’s RPS Solar requirement is then multiplied by forecast total electricity sales to arrive at projected SRECs required. Projected capacity required is based on a factor of 1,200 MWh in PJM states and 1,130 MWh in MA, generated per MW of installed capacity per year.
FOR IMMEDIATE RELEASE
DELAWARE’S SUSTAINABLE ENERGY UTILITY TO OFFER 2ND ANNUAL SOLAR RENEWABLE ENERGY CREDIT AUCTION
SRECTRADE SELECTED TO MANAGE SECOND SOLAR CREDIT AUCTION
2013 SREC Procurement Auction News Release
Wilmington, DE, March 8, 2013 –The Delaware Sustainable Energy Utility (SEU), announced today the dates for the commencement of its 2nd Solar Renewable Energy Credit Procurement auction. The application process will commence on March 25th and accept applications through April 12th. The procurement program creates a market in Delaware for the buying and selling of Solar Renewable Energy Credits (SRECs). SRECs allow generators of renewable energy to sell credits to Delmarva Power for its compliance with state standards for renewable energy development. These credits can accrue automatically to solar panel owners and often can be traded and sold like stocks on the stock market.
This second procurement auction follows last year’s successful pilot program. The program is designed to bring price stability through 20-year SREC contracts offered by the SEU in a manner that helps to drive down long-term energy costs for everyone. The procurement program for 2013 is being improved based on an evaluation and recommendations by the Delaware Renewable Energy Task Force which made recommendations to the Public Service Commission as part of Delmarva Power’s petition to enter into an agreement with the SEU to offer the auction. On January 22, 2013, the Public Service Commission approved moving forward with the second auction. One important change approved by the Public Service Commission is an expansion of the program to enable owners of solar systems installed prior to December 30, 2010 to participate.
Senator Harris B. McDowell III, Chairman of the SEU stated, “Building on our very successful Solar Pilot Program in 2012 where 9800 SREC’s were procured and 91 new solar projects were incented this second auction is the latest step taken by the SEU to create jobs and promote renewable energy. The SEU is fulfilling its role as the one-stop shop for clean energy needs of all our citizens and businesses. The SREC Market will assure continued job creation in Delaware while cost-effectively increasing energy security, reducing our carbon footprint, and lowering the state’s pollution.” The Senator continued, “The unique capabilities of the SEU make the new solar auction possible. It can independently and transparently provide a statewide platform for buying and selling SRECs at the lowest price, and greatly reduce the long-term social, economic and environmental risks that future generations would otherwise face.”
SRECTrade, Inc. was selected by competitive bid to act as Procurement Agent for the program in 2012 and again for 2013. Mr. Kevin Quilliam, President of SRECTrade said, “SRECTrade started the first public, transparent market place for Delaware SRECs in 2009, and we look forward to continuing to support the evolution of the Delaware marketplace as the SREC Procurement Program is implemented. SRECTrade will use its leading SREC management platform and apply its market expertise in the execution of the program.”
The auction will be hosted at www.SRECDelaware.com and all program information regarding the procurement will be posted on the site. SRECTrade will use its leading SREC management platform and apply its market expertise in the execution of the program. All information regarding the procurement will be available at www.SRECDelaware.com and like the Pilot Procurement; all bids will be entered online at this site. The 2013 procurement auction will consist of five tiers, three for new systems and two for existing systems. All Tiers will be competitively bid. Each winning bid will enter into a contract for a term of 20 years. For the first 7 years, the SREC price will be the accepted bid price. For the remaining 13 years, the SREC price will be fixed at $50 per SREC. There will be no requirement for an owner representative in this solicitation, although owners can opt to use the services of an owner representative. The Solar Renewable Energy Credit price used in any return on investment calculations is not guaranteed. Winning any solicitation or auction is not guaranteed. The SREC price may vary.
For SEU Contact: Tony DePrima (302) 883-3038
For SRECTrade Contact: Kevin Quilliam (877) 466-4606
