SRECTrade’s November 2012 SREC Auction closed last week. Below are the clearing prices by vintage across the markets covered in the auction.
| November SREC Prices | Energy Year Ending | ||
| State | 2011 | 2012 | 2013* |
| Delaware | – | – | – |
| Maryland | – | $130.00 | – |
| Massachusetts | – | $199.00 | – |
| New Jersey | – | $70.01 | $70.00 |
| Ohio In-State | – | – | – |
| Ohio Out-of-State | – | – | – |
| Pennsylvania | – | $15.00 | $8.99 |
| Washington, DC | $251.00 | $300.00 | – |
Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year.
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 November auction. The last auction price for DE2012 SRECs was $40.00 in the September 2012 auction. Most demand for DE SRECs will be through the DE SEU SREC Procurement Program solicitations. More information about these solicitations can be found at srecdelaware.com.
Maryland: MD2012 SRECs continue to decline in price, trading at $130/SREC. The 2012 market is expected to be oversupplied. More than 60,000 MD2012 SRECs, ~90% of this year’s requirement, have been issued through September generation. A portion of the 2012 oversupply is driven by a 20 MW project in Hagerstown, MD and a 16.1 MW project at Mount St. Mary’s University. There have been rumors that some of the SRECs from the Mount St. Mary’s project will be withheld from the market, but no official statement has been made public. The market is expecting this volume to impact supply.
Massachusetts: MA2012 SRECs continue to trade around $200/SREC. SREC issuance volumes through Q2 2012 and Q3 2012 MWhs reported to the MA CEC demonstrate that 2012’s requirements have been met. The market will likely be oversupplied by approximately 50% of this year’s compliance obligation. Many sellers remain confident they will be able to utilize the DOER’s solar credit clearinghouse auction if they are unable to sell their SRECs prior to the close of the trading year.
New Jersey: NJ2012 SRECs traded up $5/SREC, while the NJ2013 vintage remained flat at $70/SREC. December 1 is the final deadline for Load Serving Entities to complete their 2012 compliance requirements. SREC volumes issued through September, plus the oversupply from 2012, have surpassed the 2013 compliance obligation.
Ohio: OH Sited and OH Adjacent markets did not trade in the November 2012 auction. Both markets are oversupplied. It appears that 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. Given the current market, it is likely there will be minimal demand for the remaining part of the 2012 compliance year.
Pennsylvania: Both PA2012 and PA2013 SRECs traded down from $17 to $15 and $20 to $8.99, respectively. The lack of demand for the 2013 vintage caused the significant decline. SREC oversupply continues to impact PA’s market.
Washington, DC: The 2012 vintage increased from $290 to $300/SREC. New installations continue to come online slowly as the geography of the District is challenging for developers. The 2012 market is likely under supplied given the estimated requirements for the 2012 compliance year.
For historical auction pricing please see this link. The next SRECTrade auction closes on Monday, December 3rd at 5 p.m. ET and will cover MA and PJM Solar RECs. Click here to sign in and place an order.
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