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Maryland Lawmakers Propose Increase to Renewable Portfolio Standard

Posted December 11th, 2015 by SRECTrade.

Chief policymakers in Maryland gathered on Tuesday, December 8th to publicly unveil their plan to establish the largest clean energy program in the state’s history. The proposed 2016 “Clean Jobs Act” is a $40 million plan to stimulate Maryland’s clean energy sector and to increase the state’s existing Renewable Portfolio Standard (RPS) to 25 percent by 2020, a sizable increase over the state’s current goal of 20 percent by 2022. This would increase the number of Solar Renewable Energy Credits (SRECs) needed to be purchased and retired by state electricity suppliers. Two of the plan’s major proponents, Senate Majority Leader Catherine Pugh (D-Baltimore) and Delegate Dereck Davis (D-Prince George’s), announced the plan during a press conference alongside a diverse base of supporters, including small businesses, community colleges, climate advocates, and job training leaders. Senator Pugh and Delegate Davis are also joined by bipartisan co-sponsorship from Senator Brian Feldman and Delegate Bill Frick of Montgomery County, who initiated legislation to expand Maryland’s RPS earlier this year. As 2015 comes to a close, Delegate Davis asserted that “2016 is the year to pass this ‘Clean Jobs Act’ for Maryland.”

The proposed workforce development plan within the larger RPS bill will source $40 million from unallocated contributions from Maryland’s Strategic Energy Investment Fund. If passed, the Act will create an estimated 2,000 additional clean energy jobs and further contribute to the rapidly-growing Maryland renewable energy sector. The state’s solar industry already supports over 3,000 workers, and the industry is expected to add 750 more jobs this year. Collectively, state policies addressing climate change are projected to generate 26,000 to 33,000 new jobs and increase wages by tens of billions of dollars by 2020.

In addition to addressing the state’s economic needs, the bill helps Maryland to address climate change with clean energy, while improving air quality and reducing greenhouse gas emissions. The RPS increase will create financial incentives to add approximately 1,300 Megawatts (MW) of clean energy by 2020. Decreasing solar and wind prices and the potential for utilizing untapped energy assets will help facilitate the achievement of this goal. The announcement of the plan follows a positive report from the Department of the Environment that Maryland is well on its way to meeting its existing goals, and broad support from faith, labor, social justice and environmental constituencies bolsters public support for the new plan.

“I’m proud to sponsor this legislation because addressing climate change and improving our economy go hand-in-hand,” said Sen. Feldman. “It’s time to lock in Maryland as a leader in both.”

Posted in Maryland, SREC Markets | Comments Off on Maryland Lawmakers Propose Increase to Renewable Portfolio Standard

Illinois Supplemental PV Procurement Results – Round 2 November 2015

Posted November 23rd, 2015 by SRECTrade.

In November 2015, SRECTrade participated in the second round of the Illinois 2015 PV Procurement Program. SRECTrade was among the 11 winning suppliers of the 5-year SREC contracts awarded through the procurement program. For the IPA’s official announcement, click HERE.

Screenshot_112015_105847_AM

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Posted in Illinois | Comments Off on Illinois Supplemental PV Procurement Results – Round 2 November 2015

SRECTrade Markets Report: October 2015

Posted November 20th, 2015 by SRECTrade.

**(UPDATE: Template below updated on 11/25/15 to reflect new MA DOER SREC-II information as of 11/18/15.)

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade 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 PDF copy of this table can be found here.

Capacity_October2015

There are 71,261 facilities registered in GATS as of 11/10/2015. See below for a more detailed breakdown.

PV and STH Oct 2015

There are 335 projects over 1 MW in capacity, representing 1,087.4 MW or 44.5% of the qualified capacity. The largest projects in PJM are located in NC, MD, NJ and IL. There are 56 projects that are 5 MW or larger. These make up 22.7% of all qualified capacity in PJM. The top 5 largest projects are listed below.

2015_11 Q4 15 GTM Report Inserts_11-11-15 5 Largest copy

 

NJ Office of Clean Energy Estimated Installed Capacity Through 10/31/15

On November 10, 2015, the New Jersey Office of Clean Energy (OCE) announced total installed solar capacity reached 1,556.7MW through 10/31/15; an increase of approximately 10.35 MW over the total capacity reported through the end of September 2015. The average last six month build rate per month, according to the OCE data, is 13 MW. Note that this data does not directly tie to GATS registration data because of a lag between NJ Office of Clean Energy certifications and GATS registrations.

Overview of MA DOER SREC-I and SREC-II Eligible Systems

SREC-I Program

The Massachusetts SREC-I program was capped on June 30, 2014. As of 10/14/2015 the DOER reported that 6.7 MW of solar is still listed as Qualified but not operational. In total, 653.8 MW of capacity is listed as qualified, of which 647.1 MW is operational.

SREC-II Program

The SREC-II program opened on April 25, 2014. The program is broken in to Market Sectors. For a detailed overview of the regulations regarding SREC-II please visit here. As of 11/18/2015, 465.5 MW of capacity is currently qualified under the SREC-II program, but only 275.2MW is operational.

Starting May 15, 2015 the DOER began publishing data showing generation units under review in the SREC-II Program.  Total capacity under review is 21.2 MW, of which 2.9 MW is operational.

How to Interpret The Capacity Table at the Top of this Post

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” through 2013. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.0% 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 1,160 MWh in MA, generated per MW of installed capacity per year.

Posted in Capacity Summary, SREC Markets | Comments Off on SRECTrade Markets Report: October 2015

Maryland SREC Update: October 2015

Posted October 28th, 2015 by SRECTrade.

Last week, attention focused on the Maryland SREC market. On Monday, 10/19/15, Maryland regulated utilities awarded load auction bids for electricity supply. Electric load was contracted for anywhere between 3 and 24 months into the future. Once load suppliers begin to lock in their load obligations, attention naturally turns to the REC markets to begin planning for the corresponding compliance obligations.

Given the additional attention on the recent load auction and the consequent trading activity in the MD SREC market, we have refreshed our capacity scenarios to get a stronger sense of the current balance between supply from recently built projects and demand from RPS compliance obligations.

Our most recent MD SREC capacity presentation can be found here.

As of our last MD capacity update, Last Twelve Month (LTM) monthly build rates were 5.8 MW per month. Due to a remaining balance of approximately 73,400 CY 2013 and 2014 SRECs and a strong Q4 2014 build, the market was expected to be slightly oversupplied in the short term (2015 and 2016) by about 10%-30%; depending on forecast monthly solar build rates. Despite this short term oversupply, the market was projected to return to balance by 2017 with significant under supply in 2018 and 2019. At the time, supply/demand balance and observed build rates justified the thesis that the MD solar market had the ability to digest more project build.

Since the late spring / early summer, the PJM GATS renewable generators report shows Maryland experienced a strong uptick in new build during the summer, with build rates from June through August increasing 34% from the previous three months ending in May.

Average LTM build rates now stand at 10.6 MW per month.  At this increased pace, the Maryland SREC market will experience over supply in the coming years. Across three scenarios – 75%, 100%, and 150% of LTM solar build rates – the market is forecast to be oversupplied through 2019.

What this means for MD SREC pricing 

If these observed build rates continue into the future, downward pricing pressure will result as more and more supply is brought to market. This is particularly relevant now, as electricity companies who have sold electric supply for the next 24 months will be looking to buy their SREC exposure for a similar time period.  Market participants can look at forward structures such as multi-year SREC strips as an opportunity to lock in forward pricing to protect from any future price movement.

As always, this analysis is informational only in purpose in order to help explain the emphasis on MD SREC markets last week. We will continue to watch the markets closely and stay on top of new MD capacity data as it is updated by PJM-GATS.

 

Disclaimer. This document, data, and/or any of its components (collectively, the “Materials”) are for informational purposes only. The Materials are not intended as investment, tax, legal, or financial advice, or as an offer or solicitation for the purpose or sale of any financial instrument. SRECTrade, Inc. does not warranty or guarantee the market data or other information included herein, as to its completeness, accuracy, or fitness for a particular purpose, express or implied, and such market data and information are subject to change without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Any comments or statements made herein do not necessarily reflect those of SRECTrade, Inc. SRECTrade, Inc. may have issued, and may in the future issue, other communications, data, or reports that are inconsistent with, and reach different conclusions from, the information presented herein.

Copyright. This document is protected by copyright laws and contains material proprietary to SRECTrade, Inc. This document, data, and/or any of its components (collectively, the “Materials”) may not be reproduced, republished, distributed, transmitted, displayed, broadcasted or otherwise disseminated or exploited in any manner without the express prior written permission of SRECTrade, Inc. The receipt or possession of the Materials does not convey any rights to reproduce, disclose, or distribute its contents, or to manufacture, use, or sell anything that it may describe, in whole or in part. If consent to use the Materials is granted, reference and sourcing must be attributed to the Materials and to SRECTrade, Inc. If you have questions about the use or reproduction of the Materials, please contact SRECTrade, Inc.

Posted in Maryland, SREC Markets | Comments Off on Maryland SREC Update: October 2015

New Jersey SREC Update: October 2015

Posted October 17th, 2015 by SRECTrade.

This week the NJ SREC market experienced sustained buying in both the OTC New Jersey SREC markets as well as in the NJ EDC Spot auction.  Tuesday and Wednesday spot markets were bid higher as well as noticeable buying in forward markets for the NJ17, NJ18, and NJ19 vintages.  In Thursday’s EDC  auction, the final price ($243.30) settled a little more than three dollars above the session’s offer price.

With all this focus on New Jersey SREC markets, we believe this is an opportune time to share our updated capacity models and provide additional information on what drove price action this week.

Our New Jersey SREC Update presentation can be found here.

A consistent trend observed in the New Jersey SREC market is the impact of the annual BGS auction, held in February of each year.  As the New Jersey Electric Distribution Companies use the auction to procure large amounts of power supply, a corresponding number of SRECs must also be procured in the market in order to satisfy the new compliance requirements.  As the market has come to understand this relationship, it is possible SREC buyers are entering the market earlier and earlier in an attempt to secure supply ahead of the BGS-induced rush.  It could be inferred therefore that participants may now be using the liquidity supplied by other market events (in this case, Thursday’s EDC spot auction) as an opportunity to position even further ahead of any future price appreciation.

Regarding the buying activity in farther dated NJ SREC energy years, we revisited our capacity model which tracks state supply and demand fundamentals.  Slides 6 and 7 of the NJ SREC Update presentation start with currently available 2015 market data, then examine three different build scenarios, based off of current LTM build rates, and observe the impact each has on the future balance of supply through 2020.  Although the market is predicted to be fundamentally oversupplied, to some degree, across some of the build scenarios, even the greater per month build rates result in oversupply by ~27.6% in RY2019.  While not insignificant, a 27.6% oversupply on its own does not guarantee the type of consistent selling pressure that would lead to a sustained selloff.  If that 27.6% of the market decided to wait and hold off selling SRECs, or if the market experienced a build rate more in line with the current trend (~16.0 MW/month), the market could find support from a more balanced supply and demand dynamic.

To be clear, this is informational in purpose to assist in explaining the focus on NJ Solar RECs this week.  We will, however, be watching the markets closely through year end to see if these trends continue to develop.

 

Disclaimer. This document, data, and/or any of its components (collectively, the “Materials”) are for informational purposes only. The Materials are not intended as investment, tax, legal, or financial advice, or as an offer or solicitation for the purpose or sale of any financial instrument. SRECTrade, Inc. does not warranty or guarantee the market data or other information included herein, as to its completeness, accuracy, or fitness for a particular purpose, express or implied, and such market data and information are subject to change without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Any comments or statements made herein do not necessarily reflect those of SRECTrade, Inc. SRECTrade, Inc. may have issued, and may in the future issue, other communications, data, or reports that are inconsistent with, and reach different conclusions from, the information presented herein.

Copyright. This document is protected by copyright laws and contains material proprietary to SRECTrade, Inc. This document, data, and/or any of its components (collectively, the “Materials”) may not be reproduced, republished, distributed, transmitted, displayed, broadcasted or otherwise disseminated or exploited in any manner without the express prior written permission of SRECTrade, Inc. The receipt or possession of the Materials does not convey any rights to reproduce, disclose, or distribute its contents, or to manufacture, use, or sell anything that it may describe, in whole or in part. If consent to use the Materials is granted, reference and sourcing must be attributed to the Materials and to SRECTrade, Inc. If you have questions about the use or reproduction of the Materials, please contact SRECTrade, Inc.

 

Posted in New Jersey, SREC Markets | Comments Off on New Jersey SREC Update: October 2015

SRECTrade Markets Report: September 2015

Posted October 8th, 2015 by SRECTrade.

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade 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 PDF copy of this table can be found here.

Capacity_September2015

Overview of PJM Eligible Systems Through 9/28/2015

There are 69,266 facilities registered in GATS as of 9/28/2015. See below for a more detailed breakdown.

STH and SUN projects sept15

There are 328 projects over 1 MW in capacity, representing 1,043.6 MW or 43.9% of the qualified capacity. The largest projects in PJM are concentrated in NC and MD. There are 52 projects that are 5 MW or larger. These make up 21.7% of all qualified capacity in PJM. The top 5 largest projects are listed below.

Sept15 top 5

NJ Office of Clean Energy Estimated Installed Capacity Through 9/30/15

On October 13, 2015, the New Jersey Office of Clean Energy (OCE) announced total installed solar capacity reached 1,546.2 MW through 9/30/15; an increase of approximately 11.8 MW over the total capacity reported through the end of August 2015. The average last six month build rate per month, according to the OCE data, is 12.8 MW. Note that this data does not directly tie to GATS registration data because of a lag between NJ Office of Clean Energy certifications and GATS registrations.

Overview of MA DOER SREC-I and SREC-II Eligible Systems

SREC-I Program

The Massachusetts SREC-I program was capped on June 30, 2014. As of 10/14/2015 the DOER reported that 6.7 MW of solar is still listed as Qualified but not operational. In total, 653.8 MW of capacity is listed as qualified, of which 647.1 MW is operational.

SREC-II Program

The SREC-II program opened on April 25, 2014. The program is broken in to Market Sectors. For a detailed overview of the regulations regarding SREC-II please visit here. As of 10/14/2015, 420.5 MW of capacity is currently qualified under the SREC-II program, but only 249.3 MW is operational.

Starting May 15, 2015 the DOER began publishing data showing generation units under review in the SREC-II Program.  Total capacity under review is 14.5.0 MW, of which 1.2 MW is operational.

How to Interpret The Capacity Table at the Top of this Post

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” through 2013. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.0% 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 1,160 MWh in MA, generated per MW of installed capacity per year.

Posted in Capacity Summary, SREC Markets | Comments Off on SRECTrade Markets Report: September 2015

October 6, 2015 Illinois Supplemental PV Procurement Program (Round 2) – Introduction Webinar Slides and Recording Available

Posted October 6th, 2015 by SRECTrade.

On October 6, 2015, SRECTrade hosted a webinar for the second round of the Illinois Supplemental PV Procurement Program. The webinar covered the following:

  • Overview of the IL SREC program
  • June 2015 procurement results (Round 1)
  • Summary of the registration and bid process
  • Example aggregate bid groups
  • Procurement timeline
  • Q&A

The application window is currently open and closes on October 21, 2015 at 5 p.m. central. To finalize your registration please login or create an account on SRECTrade.

For access to the slides please click here: SRECTrade IL Procurement Webinar. For a video recording of the webinar, click the image below.

This document and recording is protected by copyright laws and contains material proprietary to SRECTrade, Inc. It or any components may not be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of SRECTrade, Inc. The receipt or possession of this document does not convey any rights to reproduce, disclose, or distribute its contents, or to manufacture, use, or sell anything that it may describe, in whole or in part. If consent to use these materials is granted, a link to the current version of this document on the SRECTrade website must be included for reference.

Posted in Illinois, Webinars | Comments Off on October 6, 2015 Illinois Supplemental PV Procurement Program (Round 2) – Introduction Webinar Slides and Recording Available

Massachusetts DOER Announces 2016 SREC-II Obligation and Zero Managed Growth for 2017

Posted August 31st, 2015 by SRECTrade.

On August 28, the Massachusetts Department of Energy Resources (DOER) announced the Solar Carve-Out Minimum Standard for 2016. As described by the DOER, “the Minimum Standard for the Class I Solar Carve-Out II is the percentage of a Supplier’s total retail load obligation that must be met by the ownership of Solar Carve-Out II Renewable Energy Certificates (SREC IIs) issued by the NEPOOL GIS, with each SREC II signifying one MWh of electrical energy from a Generation Unit that has been qualified by the DOER under the Solar Carve-Out II Program.”

The 2016 requirement for SREC-II is 0.7851%. With an estimated Retail Load Obligation of 48 million MWhs in 2016, applying the minimum standard of 0.7851% results in the compliance obligation of 377,877 SRECs:

Current_Status_of_the_Solar_Carve-Out_II_Program

The DOER previously announced the SREC-I obligation for 2016 (1.7568%).

Finally, the DOER also announced that the 2017 Managed Growth Capacity Block has been set at zero megawatts.

 

Posted in SREC Markets | Comments Off on Massachusetts DOER Announces 2016 SREC-II Obligation and Zero Managed Growth for 2017

Massachusetts Governor Baker Releases Net Metering Bill to Rival Senate Bill

Posted August 13th, 2015 by SRECTrade.

Shortly before its summer recess, the Massachusetts Senate passed Amendment 18 to S. 1973 in a voice vote on July 23. Two weeks later, on August 7, 2015, Massachusetts Governor Charlie Baker released a net metering bill to rival S. 1973.

Both the Senate Bill and the Governor’s Bill address the net metering caps that are currently causing a slow-down in the Commonwealth’s solar development, and look to former Governor Patrick’s goal for the Commonwealth to install 1,600 megawatts of solar energy in Massachusetts by 2020. Earlier this year, the Baker-Polito Administration announced its support of the goal to achieve 1,600 MW by 2020. Accordingly, both S. 1973 and the Governor’s Bill propose to raise the net metering caps to meet the goal of 1,600 MW by 2020.

Under Amendment 18 to S. 1973, the Senate calls for raising the caps to 1,600 MW, and eliminating the caps thereafter (the elimination of the caps would apply to solar net metering facilities, with the exception that the maximum amount of generating capacity eligible for net metering by a municipality or other governmental entity shall be 10 megawatts), but the bill would do little else to change the value of a net metering credit. In addition to addressing the caps, the Amendment calls for Massachusetts regulators to “develop a solar incentive program to encourage continued development of solar…” with the goal of “develop[ing] a sustainable long-term framework that effectively balances promoting clean energy and costs to ratepayers,” to be implemented after the 1,600 MW target has been reached. Unfortunately, the Senate bill also attempts to limit the potential options for future programs, without much consideration for allowing the stakeholder process to consider all of the policy options presented by the Task Force in its Final Report (see below).

In contrast, Governor Baker’s Bill would substantially reduce the value of net metering credits in the Commonwealth. For solar projects over 10 kW on single phase, or projects over 25 kW on 3-phase, the value of net metering credits will be the average monthly clearing price in ISO-NE (that is, the wholesale retail rate). This would be a drastic change from the current value, which includes the value of all wires charges, such as distribution, transmission and transition charges. For other specific facilities, including municipal or other governmental entity (“MOOGE”) facilities, facilities for low-income off-takers and community shared solar facilities, the value of net metering credits will be based on the utility’s basic service kW charge, and will also exclude wires charges. The result of this exclusion in both categories is the value of credits being cut nearly in half. But like the Senate Bill, the Governor’s Bill also calls on Massachusetts regulators to “establish a solar incentive program for the development of distributed solar generation beyond 1,600 [MW] by solar photovoltaic facilities connected to a distribution or transmission system, which shall be a statewide program.”

Both the Senate Bill and the Governor’s Bill draw upon the recommendations from the Net Metering and Solar Task Force. The Net Metering and Solar Task Force was a group established last fall by the Massachusetts Legislature under Ch. 251 of the Acts of 2014, Section 7. The Task Force was responsible for reviewing the “long-term viability of net metering and develop recommendations on incentives and programs to support the deployment of 1600 MW of solar generation facilities in the commonwealth.” In its Final Report, the Task Force encouraged the Commonwealth to develop a solar incentive framework that would satisfy eight different program attributes, including promoting the orderly transition to a stable, equitable and self-sustaining solar market, and relying on market-based mechanisms and/or price signals as much as possible to set incentive levels such that the program would be readily adaptable to changing market conditions, all while minimizing costs, incentivizing diverse development, and promoting investor confidence. The Task Force cautiously qualified its recommendations by stating that “[t]he selection of a path for modeling is not an indication that a majority, or indeed any, of the Task Force members would like to see that path implemented,” and encouraged the DOER and DPU to lead a “comprehensive and transparent solar benefit/cost study to determine the value of impact of solar in Massachusetts” so that the Massachusetts Legislature, DOER, and DPU could more thoroughly evaluate the options presented by the Task Force, including the potential for an SREC III program to follow the highly successful SREC I and SREC II programs.

When the Legislature returns from its summer recess this Fall, the Joint Committee on Telecommunications, Utility and Energy will be confronted with the formidable task of reconciling these rival bills alongside the recommendations from the Net Metering and Solar Task Force, in order to help shape the future of solar in Massachusetts.

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Posted in Massachusetts, SREC Markets | Comments Off on Massachusetts Governor Baker Releases Net Metering Bill to Rival Senate Bill

Obama Administration Releases Clean Power Plan Final Rule

Posted August 3rd, 2015 by SRECTrade.

On August 3rd, 2015, President Obama and Environmental Protection Agency (EPA) Administrator Gina McCarthy released the Final Rule for the Clean Power Plan, the first-ever national standard set to limit carbon pollution from power plants.

Under the authority of Section 111(d) of the Clean Air Act, the Clean Power Plan requires states to develop tailored implementation plans to reduce carbon emissions by 32 percent from 2005 levels by 2030. In effect, the Plan will create more demand for solar and other renewable technologies than all statewide Renewable Portfolio Standards currently in place. Assuming that implementation of the Final Rule takes place as scheduled, the states’ initial compliance plans will be due in September 2016, but the Plan allows states to requests extensions of up to two years for final plan submission, to ensure that the states have enough time to develop sustainable compliance plans. Additionally, the Final Rule extended the compliance averaging period to begin in 2022 instead of 2020, and emissions reductions are phased in on a gradual “glide path” to 2030.

The Clean Power Plan was designed to build upon steps taken by the Administration, states, cities, and companies throughout the country to address climate change, which have resulted in these accomplishments to date:

  • 37 states with renewable portfolio standards or goals
  • 25 states with energy efficiency standards or goals
  • 10 states with market-based greenhouse gas reduction programs
  • 50 states with demand-side energy efficiency programs

The Administration is confident that the Clean Power Plan sets flexible and achievable standards to reduce carbon dioxide emissions from power plants, which are the largest source of carbon emissions in the United States. The Plan’s reduction in pollutants that contribute to soot and smog will provide significant public health benefits, including reduced asthma attacks in children. In addition to promoting the Plan’s public health benefits, the Plan encourages states to make early investments in clean energy and job creation while focusing on low-income communities and helping the average American family save money on their energy bill.

The White House Press Release is available here, and the Final Rule can be found here (note, however, that this version will be replaced once the official version is published with the Federal Register) . The EPA also prepared a helpful Factsheet, which provides a broad overview of the Plan. The Final Rule will be effective 60 days after publication in the Federal Register.

Posted in SREC Markets | Comments Off on Obama Administration Releases Clean Power Plan Final Rule

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