Archive for the ‘SREC Markets’ Category

Why are Pennsylvania SREC prices so low?

Posted February 16th, 2012 by SRECTrade.

SRECTrade has printed auction prices for Pennsylvania ranging from a high of $310 in June 2010 and a low of $20 for SRECs created in the same energy year. The drop in Pennsylvania SREC prices is due to a severe over-supply of SRECs above the amount of SRECs that buyers (electricity producers) need to acquire each year, but how did the market become over-supplied and is anything being done to address the over-supply?

Background

The Pennsylvania SREC market was created as a state-level, long-term incentive for homeowners and businesses to go solar, but around the same time that the SREC market was created, other, more generous solar rebate programs like the Pennsylvania Sunshine Program were created that caused a short-term boom in solar installations. In addition to this, the Pennsylvania SREC market is one of two markets (OH is the other) that accept SRECs from out-of-state sited solar systems, including from states that don’t have their own SREC markets. This means that Pennsylvanians are effectively subsidizing solar in other states and ensuring that Pennsylvania SREC prices remain low.

The Proposed Fix

The Pennsylvania SREC market was created by the state legislature and amendments to the market must go through the legislature first. In the spring of 2011, Rep. Chris Ross (R-Chester) proposed House Bill (HB)-1580 to address some of the key factors behind low Pennsylvania prices. The crux of HB 1580 is a proposal to move up the SREC requirement by three years. This would mean that if the bill passed, Pennsylvania SREC requirements would increase beginning in 2013. A detailed schedule of the proposed increase can be found in the bill.

We’ve followed the progress of HB 1580 over the last year and periodically posted updates to our blog. Most recently the bill went before the House Consumer Affairs Committee on January 11, 2012 where it met resistance from Committee Chair Rep. Bob Godshall (R-Montgomery) and various entrenched groups representing the Pennsylvania electricity industry. Since the January hearing Rep. Chris Ross has worked hard to develop compromise amedments to HB-1580 that might help the bill survive a tough Committee vote. If the bill makes it out of Committee it has 110 co-sponsors in the House and substantial Senate support in a companion bill.

According to PennFuture, a Pennsylvania environmental and renewable energy advocacy group, Ross’ proposed the following compromises:

Capping the Alternative Compliance Payment (ACP) for solar at $325, with a 2% annual decline
Offsetting early-year increases in the solar requirement with decreases in later years and extending the SREC program through 2026
Allowing solar hot water (SHW) systems to qualify for SREC sales
Making slight adjustments to the language of the in-state requirement, aimed at preventing net-metered systems from inadvertently being disqualified
Ensuring that utilities cannot procure any AEPS resource above the ACP price

What Can You Do?

Pennsylvania solar advocates are hoping that they can convince the House Consumer Affairs Committee to vote on HB 1580 when the legislature reconvenes in mid-March. If you are a Pennsylvania resident, please feel free to contact House Majority Leader Turzai at 717-772-9943 to express your support for seeing the bill go up for vote.

Tags: HB 1580, Pennsylvania, Pennsylvania SREC, Solar, Solar Cost, SREC Prices, SRECs
Posted in Pennsylvania, SREC Markets | Comments Off on Why are Pennsylvania SREC prices so low?

NJ Market Update

Posted February 13th, 2012 by SRECTrade.

The collapse of NJ SREC prices resulting from a market oversupply in the last six months has called for legislative or administrative action. Theoretically the RPS is a self-correcting mechanism where low prices lead to a slowdown in build rate while the annual Renewable Portfolio Standard (RPS) increases to catch up to any oversupply. In practice, SREC price signals are impacted by other outside incentive programs like the Treasury cash grant which can lead to dramatic overshoots like we currently see in NJ and PA. Also, the RPS adjusts only on an annual time frame, so while it should eventually self-correct, it may take several years even if almost all new solar development stops. While a few of the large, well-capitalized commercial and utility scale solar companies can afford to stop installation while the market mechanism corrects itself, most of the hundreds of smaller pure play solar installers will either have to leave the state or close. As a result, they, and the thousands of existing solar PV system owners in the state, are pushing for changes to the RPS program to ensure the continued vitality of the industry and the SREC revenue streams they are counting on to pay for their installations.

The RPS in NJ was created by a state law, but largely implemented by an administrative agency, the Board of Public Utilities (BPU). While the state law sets the general framework for the RPS, it also gives the BPU significant latitude to modify the RPS rules, creating two avenues for changes to the RPS: legislative amendments or administrative rule changes. Mainly due to disagreement within the solar industry itself over the role of large utility scale solar farms in the RPS, the state legislature failed to pass a bill in the last hours of the 2010-2011 session that would have increased the RPS requirement in the short-term and decreased the alternate compliance payment (ACP) to minimize costs to ratepayers. With a new legislature recently sworn in, it will probably take months before any further legislative action will take place.

This leaves administrative action by the BPU as the only possible short-term solution. The two ideas on the table now both involve extending the Electric Distribution Company (EDC) loan and SREC-based financing programs, which otherwise have all expired. The first option is to extend them and increase the RPS requirements 1:1 for the increase in the capacity these programs will bring on line, effectively having a neutral effect on the market. The second option is to extend the loan programs but do nothing to the RPS requirements, which would exacerbate the oversupply by driving yet more capacity into the market without stepping up demand.

The most pressing issue for either option is a bit more subtle, but affects all parties in the electric utility industry. There is an existing law, the Solar Energy Advancement and Fair Competition Act, which generally exempts Basic Generation Service (BGS) suppliers from any change in SREC requirements during their contract term. That means that any increase in the RPS falls entirely on competitive Load Serving Entities (LSEs) that do not have BGS load requirements for the first 3 years, making it more difficult for them to compete with BGS suppliers. As a result, the LSEs are generally against any RPS change that goes into effect now, although ambivalent to something that goes into effect in 3 years. The EDCs are split on the program, some support extending the loan programs and others don’t. The NJ Rate Counsel is generally opposed to any action that would increase costs to ratepayers.

The Solar Energy Industries Association, a solar trade group, has emerged as a creative negotiator in the process. They have put forward a modified option 1 which extends the EDC loan programs and increases the RPS an equal amount. However, while the loan programs go into effect now, the increase in requirements doesn’t happen for 3 years. To avoid a glut in the market, the EDCs would be required to bank all the SRECs they generate in the first 3 years, and sell them all once the corresponding increase goes into effect. This clever solution addresses the concerns of most of the parties involved and may have a good chance to pass.

None of these options actually addresses the current oversupply for existing systems, so unless the conversation changes dramatically, we will continue to see depressed NJ SREC prices for several years with no quick fix in sight. The only exception to this might occur in August or September if enough generators decide to hold their SRECs for higher prices and create a shortage of available SRECs, even though the supply of generated SRECs exceeds demand. There is a very asymmetric engagement here if the market is examined through a game theory lens. In a normal game like this, buyers and sellers have an equal time horizon, i.e. the buyers need 100 SRECs by Sep 30th and the sellers have to sell it by Sep 30th or it will become worthless, essentially a big game of chicken to see who blinks first. In this case, the buyers need the 100 SRECs by Sep 30th, but the sellers don’t have to sell by then and in fact will rationally anticipate that today’s low prices will inhibit further supply, leading to an undersupply sometime in the next 3 years (the life of their SRECs), which will allow them to sell for more then buyers are offering today. Throw in some option theory here, and absent a liquidity crunch sellers should be unwilling to exercise their option to sell early since they give up the remaining volatility value. The real question is if the thousands of sellers will continue to show a unified front, or if, like often occurs in the Prisoners Dilemma, they will sell low even if sub-optimal because they can’t trust all the other sellers not to do the same.

Posted in New Jersey, SREC Markets | Comments Off on NJ Market Update

Solar Capacity in the SREC States – January 2012

Posted February 8th, 2012 by SRECTrade.

SRECTrade SREC Markets Report: January 2012

The following post outlines the megawatts of solar capacity certified and/or registered to create SRECs in the Solar REC markets SRECTrade currently serves.

A PDF copy of this table can be found here.

GATS Renewable Energy Generators 2_6_12_v1

PJM Eligible Systems

As of this writing, there were 22,172 solar PV and 285 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these eligible systems, 109 (0.49%) have a nameplate capacity of 1 megawatt or greater, of which 11 systems are greater than 5 MW. The largest system, the PSE&G utility pole mount project located in New Jersey, is 25.1 MW, and the second largest, located in Ohio is 12 MW. The third largest system, at 11.2 MW, is located in Delaware.

Delaware: The reporting year 2011-12 (6/1/11 – 5/31/12) requirement for DE equates to approximately 23,700 SRECs being retired. If all retired SRECs were of DE2011-12 vintage, approximately 19.8 MW would need to be operational all year long. As of February 6, 2012, 26.1 MW of solar capacity was registered and eligible to create DE SRECs in PJM GATS. 11.2 MW of the 26.1 MW currently eligible is from the Dover Sun Park project developed by LS Power. In the 2011-12 compliance year, Delmarva Power has contracted to purchase 9,846 SRECs from the project, of which 7,000 are being held by the Sustainable Energy Utility (SEU) until 2015-16*. As of February 7, 2012, PJM GATS reported the issuance of approximately 15,500 DE2011-12 vintage SRECs. Additional SRECs from prior eligible periods may also impact the market should there be a demand for these older vintage SRECs.

DE chart

Maryland: Maryland’s 2011 Solar RPS target requires approximately 33,160 SRECs to be retired. To meet this using only 2011 vintage SRECs, approximately 27.6 MW would need to be operational all year long. As of February 6, 2012, 63.9 MW of solar capacity was registered to create MD eligible SRECs. 39.2 MW of this capacity was sited in the state of MD. The RPS currently requires electricity suppliers to acquire SRECs from in-state sited solar systems before looking to outside systems. As of February 7, 2012, PJM GATS reported the issuance of approximately 34,100 MD2011 SRECs from MD sited systems. There are also MD sited SRECs available from prior eligible periods, which could be utilized for compliance needs in 2011.

MD Chart

New Jersey: The New Jersey 2012 reporting year requires 442,000 SRECs to be retired. This equates to approximately 368 MW of capacity being operational all year long if all requirements were met with current vintage year SRECs. As of February 6, 2012, 535.2 MW of solar capacity was registered and eligible to create NJ SRECs in PJM GATS. While this figure represents all projects registered in GATS, there are recently installed projects awaiting issuance of a New Jersey state certification number. This delay results in a portion of installed projects not yet represented in the 535.2 MW figure. As of December 31, 2011 the NJ Office of Clean Energy (NJ OCE) reported that 565.9 MW of solar had been installed in NJ. As of February 7, 2012, PJM GATS reported the issuance of approximately 282,500 NJ2012 SRECs.

NJ Chart

Ohio: Ohio’s 2011 RPS solar target requires approximately 46,940 SRECs to be retired by the end of the compliance period. At least 50% of the SREC requirement must come from systems sited in the state. As of February 6, 2012, 43.1 MW of in-state capacity and 76.7 MW of out-of-state capacity were eligible to generate OH SRECs. A large increase of in state capacity came from a 9.8 MW project sited at the Campbell Soup facility in Napoleon, OH. Additionally, as of February 7, 2012, GATS issued approximately 30,230 in-state and 71,000 out-of-state OH2011 eligible SRECs. Additional SRECs from prior years are also eligible for the current compliance period, which may impact the current year’s requirements.

OH Chart

Pennsylvania: The reporting year 2012 requirement for PA equates to retiring approximately 49,450 eligible SRECs. If all compliance obligations were met using 2012 vintage SRECs, approximately 41.2 MW would need to be operational all year long. As of February 6, 2012, 167.6 MW of solar capacity was registered and eligible to create PA compliant SRECs. As of February 7, 2012, PJM GATS reported the issuance of approximately 105,000 PA2012 SRECs. Given the oversupply during previous reporting years, there are also SRECs from the 2010 and 2011 reporting years eligible for the PA2012 compliance period.

PA chart

Washington, DC: DC’s 2011 RPS amended solar target requires approximately 48,220 SRECs to be retired by the end of the compliance period. The figures displayed above demonstrate the capacity of systems eligible to create DC SRECs moving forward. These SREC and capacity figures do not take into consideration the amount of electricity delivered into the district that may be exempt from complying with the Distributed Generation Amendment Act increases, considering some electricity contracts may have been signed prior to the amendment’s implementation. As of February 6, 2012, 23.0 MW of capacity was eligible to generate DC SRECs. Additionally, as of February 7, 2012, GATS issued approximately 23,800 DC2011 eligible SRECs. SRECs from prior years are also eligible for the current compliance period, which may impact the current year’s requirements.

DC Chart

Massachusetts DOER Qualified Projects

As of January 25, 2012, there were 1,321 MA DOER qualified solar projects; 1,278 operational and 43 not operational. Total qualified capacity is 53.3 MW, 36.7 of which is operational and 16.6 not operational. Of these qualified systems, 12 (0.91%) have a nameplate capacity of 1 megawatt or greater, of which 4 are between 1.5 and 2 MW. Four of the projects greater than 1 MW are currently operational, with the largest, 2.3 MW, recently operational as of December 2011. Electricity suppliers providing power to the state need to acquire approximately 62,900 SRECs in 2011. Through the Q3 2011 issuance period (1/15/12), 19,257 SRECs have been minted. The Department of Energy Resources (DOER) projects approximately 29,000 SRECs to be generated in 2011, leaving the market short approximately 33,900 SRECs. The next issuance period for Q4 2011 SRECs will be on April 15, 2012.

MA Chart

Capacity Summary By State

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. For example, New Jersey needs approximately 368 MW online for the entire 2012 reporting year to meet the RPS requirement. 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.

*Source: State of Delaware Pilot Program For the Procurement of Solar Renewable Energy Credits: Recommendations of the Renewable Energy Taskforce

Note: SREC requirements for markets without fixed SREC targets have been forecast based based on EIA Report updated 11/15/11 “By End-Use Sector, by State, by Provider”. 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.

Tags: Capacity, NEPOOL GIS, PJM GATS, renewable portfolio standard, RPS, Solar, SRECs
Posted in Capacity Summary, SREC Markets | Comments Off on Solar Capacity in the SREC States – January 2012

February 2012 SREC Auction Results

Posted February 3rd, 2012 by SRECTrade.

SRECTrade’s February 2012 SREC Auction closed this week. Below are the clearing prices by vintage across the markets SRECTrade is currently active in.

February SREC Prices	Energy Year Ending
State	2010	2011	2012*
Delaware	–	–	$60.00
Maryland In-State	$180.00	$205.00
Maryland Out-of-State	–	–
Massachusetts	–	–
New Jersey	–	–	$205.00
Ohio In-State	–	$285.00
Ohio Out-of-State	–	$40.00
Pennsylvania	$9.99	$30.00	$35.00
Washington, DC	–	$275.00

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 matching bids and offers that cleared for a sale in the auction.

State Market Observations:

Please note, all capacity references are from the December capacity analysis and reference the amount of supply registered as of the end of December. Additional details regarding SREC issuance are provided in the capacity analysis.

Delaware (Supply: 25.5 MW | Demand: 19.8 MW): Pricing was down from $65.00/SREC to $60.00. The Delaware PSC approved the SREC Procurement Pilot Program for long term contract solicitations which should commence in Q2. As of January 3, 2012, PJM GATS reported the issuance of approximately 13,560 DE2011-12 vintage SRECs. Additional SRECs from prior eligible periods may also impact the market should there be a demand for these older vintage SRECs.

Maryland (In-state Supply: 37.8 MW | Demand: 27.6 MW): SRECs held at $205 this past auction period. MD2011 Out-of-State did not trade. The state continues on pace to maintain a balanced supply relative to demand for the compliance year.

Massachusetts (Operational Supply: 32.5 MW | Demand: 55.7 MW): There was no sale of MA SRECs this period as they were sold in the Quarterly SREC Auction in mid-January. The next quarterly MA SREC auction will close in mid-April.

New Jersey (Supply: 483.2 MW* | Demand: 368 MW): The 2012 market dropped back down to $205 after the state legislature failed to pass a Bill to increase the solar requirements. Inaction will lead to continued declines in pricing.

Ohio (In-State Supply: 29.0 MW; Out-of-state Supply: 68.0 MW | Demand: 39.1 MW) : OH2011 sited SRECs dropped to $285 with growing SREC supply from large in-state systems. The out-of-state SREC market increased again to $40/SREC.

Pennsylvania (Supply: 159.4 MW | Demand 41.2 MW): PA2011 SRECs traded up again to $30/SREC and PA2012 increased to $35/SREC.

Washington, DC (Supply: 21.7 MW | Demand: 41.9 MW): The 2011 DC SRECs increased to $275/SREC.

For historical pricing please see this link. The next SRECTrade auction closes on Thursday, March 1 at 5 p.m. ET.

Tags: Auction, Prices, REC, SREC, SREC auction prices, SREC Prices, SREC Sales, SRECs
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MA2011 SREC Auction Closes at $540/SREC

Posted January 18th, 2012 by SRECTrade.

The Q3 2011 (July – September 2011) MA SRECs were issued on January 15, 2012. Unlike other SREC markets, the MA Solar Carve-Out program mints SRECs quarterly, three and a half months after the close of the calendar quarter. In coordination with the Q3 2011 issuance, SRECTrade recently held a separate auction for MA2011 SRECs.

The auction closed on Tuesday, January 17th at 5:00 p.m. Eastern. SRECs transacted at a clearing price of $540.00 per SREC. The clearing price, more than 98% of the 2011 Solar Alternative Compliance Payment (SACP), represents a strong demand for MA2011 SRECs due to a shortfall of supply in the market.

MA Chart

The next SRECTrade auction closes on Tuesday, January 31, 2012. This auction will cover all of the SREC markets including DC, DE, MA, MD, NJ, OH, and PA. The order window is currently open. All buyers and self-serve sellers can login here to place an order. Sellers utilizing SRECTrade’s management service, EasyREC, will have orders automatically placed on their behalf. If these sellers need to make changes to their minimum offer prices, they must do so prior to the order window close on January 31 at 5:00 p.m. Eastern.

The next issuance of MA2011 SRECs will be on April 15, 2012, and will cover the Q4 2011 (October – December) generation period.

Posted in Massachusetts, SREC Markets, SREC Pricing | 1 Comment »

How Oversupplied is the New Jersey market?

Posted January 18th, 2012 by SRECTrade.

Here is a very basic New Jersey SREC graphic: As of the most recent NJ BPU report, solar installation capacity in New Jersey surpassed 530 MW as of November 30, 2011, the midway point of the 2012 energy year. That’s 44% higher than where it needs to be to meet the 2012 requirement, assuming constant growth. It also means that, with no growth, there is already enough capacity to meet the requirements in EY2013. There is still room for growth in EY2014 and EY2015. Those markets are 17% and 34% short respectively based on installations TODAY. However, the chart below does not account for excess supply that is carried forward, which indicates that the oversupply scenario in New Jersey will likely extend through 2014 and possibly into 2015.

The current supply in NJ is enough to satisfy annual requirements through 2013

Note: Energy years run June 1 to May 31. So EY2013 will begin on June 1, 2012 and end May 31, 2013.

Tags: new jersey srec market, New Jersey SREC Oversupply, srec price collapse, srec price crash, SREC Prices
Posted in New Jersey | Comments Off on How Oversupplied is the New Jersey market?

Pennsylvania Solar Bill Goes to Committee

Posted January 17th, 2012 by SRECTrade.

On Wednesday, 1/11/12, Pennsylvania House Bill (HB) 1580 sponsored by Rep. Chris Ross (R-Chester) was presented to the House Consumer Affairs Committee for debate. HB 1580 is a proposal to move forward the Pennsylvania SREC requirement to the current compliance requirement for 2015 without changing the overall number of SRECs required after 2015. This would alleviate the over-supply of SRECs and increase the value of Pennsylvania SRECs. While the hearing was a critical first step for HB 1580, followers of the Pennsylvania solar industry will have to wait on the Consumer Affairs Committee’s vote before the fate of the bill is known. Should the bill make it out of committee it will also need to pass the House and Senate where both the House and Senate have voiced initial majority support for bill.

During the hearing solar industry representatives and solar consumers testified in support of the bill while utility groups and the Pennsylvania Chamber of Business spoke against it. The PA Environment Digest put together a detailed account of the testimonies. Generally those in support of the bill argue: 1) that the bill is essential for maintaining highly skilled solar jobs in Pennsylvania; 2) doesn’t increase the overall requirement for SRECs; 3)merely accelerates the requirement and 4) brings Pennsylvania’s SREC market more in line with the design of other SREC markets by closing the market to out-of-state sited systems (currently PA accepts SRECs from anywhere in the PJM region i.e most states in the mid-Atlantic and some states in the Midwest). Utility companies that testified against the bill argue that it would place an undue burden on rate payers by forcing utilities to charge more for the electricity that they supply. According to the PA Environment Digest article, there was some disagreement over the actual cost of the bill to rate payers, but on the high side utilities estimate that it would be an increase of $120 million over four years to four million Pennsylvania rate payers, which equates to an increase of about $3.33 per year to each rate payer.

SRECTrade will continue to closely monitor the development of HB 1580. Stay tuned to our blog for updates.

Tags: HB 1580, legislation, Over-supply, Pennsylvania SREC
Posted in Pennsylvania, State RPS | Comments Off on Pennsylvania Solar Bill Goes to Committee

Potential new meter requirements for all systems in NJ

Posted January 12th, 2012 by SRECTrade.

Last spring the NJ BPU quietly proposed a change to the renewable portfolio standard rules that would require revenue grade meters for all existing and future solar systems generating NJ SRECs, regardless of size. The change was buried deep in a number of minor updates to the portfolio standard rules, you’ll have to scroll down to page 8 at http://www.njcleanenergy.com/files/file/Renewable_Programs/PRN%202011-110%20(43%20NJR%201162(a)).pdf and look carefully. By the clever use of [ ] the paragraph in the rules that previously allowed the use of engineering estimates for systems less than 10kw is eliminated. What does this mean for solar system owners in NJ?

1. Everyone will have to install a revenue grade meter and in order to continue to create SRECs, even existing systems less than 10kw. There is no grandfathering clause. Note that most existing inverter meters or online monitoring systems do not meet the revenue grade requirement. As a result, most existing systems less than 10kw without a separate meter will need to contact their installer or an electrician to have a new meter installed.

2. Everyone will have to enter monthly meter readings in order to be credited with SRECs. Most metering systems are not set up to automatically enter meter readings each month, even online systems. SRECTrade customers enrolled in the EasyREC asset management system can enter their readings online through their SRECTrade.com account and be assured that their generation will be credited properly.

These requirements go into effect 6 months after the BPU passes the rule change. While the public comment period ended on July 1, 2011, the BPU has not yet acted on the rules and has no published schedule for when they intend to do so. As a result, these rules are not yet in effect and they may not ever go into effect, so you may not want to have the meter installed until you know you’ll have to. While the comment period is closed, the email address rule.comments@bpu.state.nj.us is always open and it can’t hurt to express your opinion on this rule change if you feel you will be impacted by it.

SRECTrade will continue to monitor this issue and post any updates as they occur. SRECTrade clients will be personally emailed if and when an additional meter is required for their systems.

Posted in New Jersey | Comments Off on Potential new meter requirements for all systems in NJ

New Jersey Solar Legislation Doesn’t See the Light

Posted January 10th, 2012 by SRECTrade.

New Jersey legislation to modify the state’s renewable portfolio standard (RPS) in order to increase demand to soak up existing excess supply failed to pass the NJ Legislature yesterday. In fact, the bill (S-2371) never even came to a vote because of disagreements among solar advocates, who were not in lockstep over issues such as the mix between distributed net-metered and larger utility scale projects.

Although Governor Christie signaled broad agreement with the majority of the bill in his Energy Master Plan, released in December, several last-minute changes were made in the final 2 days of the session. The complexity of these changes was apparently too great to digest given the limited time available. The view of the new legislature on this issue should not change appreciably with the start of the next session and the Governor’s support is clear.

At this point it is a matter of priority and the ability to put together a new bill and get it scheduled for a vote early in the new session. Although a setback for the solar industry in New Jersey for now, hopefully increased time to craft and debate the new bill will allow for more transparency and a lead to a better quality piece of legislation.

Tags: New Jersey, NJ, RPS, Solar, SREC
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January 2012 SREC Auction Results

Posted January 10th, 2012 by SRECTrade.

SRECTrade’s January 2012 SREC Auction closed last week. Below are the clearing prices by vintage across the markets SRECTrade is currently active in.

January SREC Prices	Energy Year Ending
State	2010	2011	2012*
Delaware	–	–	$65.00
Maryland In-State	–	$204.99
Maryland Out-of-State	–	$35.00
Massachusetts	–	–
New Jersey	–	$245.00	$245.00
Ohio In-State	–	–
Ohio Out-of-State	$30.00	$35.00
Pennsylvania	–	$20.00	$29.99
Washington, DC	$250.00	$270.00

State Market Observations:

Please note, all capacity references are from the latest SRECTrade capacity analysis and reference the amount of supply registered as of the end of December. Additional details regarding SREC issuance are provided in the capacity analysis.

Delaware (Supply: 25.5 MW | Demand: 19.8 MW): Pricing increased slightly this period, trading up to $65.00/SREC. The Delaware PSC approved the SREC Procurement Pilot Program for long term contract solicitations. As of January 3, 2012, PJM GATS reported the issuance of approximately 13,560 DE2011-12 vintage SRECs. Additional SRECs from prior eligible periods may also impact the market should there be a demand for these older vintage SRECs.

Maryland (In-state Supply: 37.8 MW | Demand: 27.6 MW): SRECs declined slightly to $204.99 this past auction period. While not seeing any demand all year long, MD2011 Out-of-State traded at $35/SREC. The state continues on pace to maintain a balanced supply relative to demand for the compliance year. As 2011 compliance obligations are finalized, a shortage of SRECs in the state, if any, will be reflected by an increase in prices at the end of the trading period.

Massachusetts (Operational Supply: 32.5 MW | Demand: 55.7 MW): There was no sale of MA2011 SRECs this period. The next quarterly MA SREC auction will close on Tuesday, January 17, 2012.

New Jersey (Supply: 483.2 MW* | Demand: 368 MW): The 2012 market increased to $245 this auction period. Approximately 15% of the available supply in the auction cleared, representing a gap between buyer and seller’s expectation of value. Oversupply continues to grow as the state has averaged 32.0 MW installed per month since the beginning of the compliance period. October 2011 saw an increase in 41.2 MW. *Note: This figure represents the capacity registered in PJM GATS as of December 2011. Please reference the capacity analysis link above for details on NJ Office of Clean Energy installed capacity figures.

Ohio (In-State Supply: 29.0 MW; Out-of-state Supply: 68.0 MW | Demand: 39.1 MW) : There was no sale of OH2011 sited SRECs. The out-of-state SREC market saw activity, increasing in value from $30/SREC to $35/SREC.

Pennsylvania (Supply: 159.4 MW | Demand 41.2 MW): PA2011 SRECs traded up to $20/SREC and PA2012 increased to $29.99/SREC. HB 1508 will go before the Pennsylvania Commerce Committee this Wednesday, 1/11/12.

Washington, DC (Supply: 21.7 MW | Demand: 41.9 MW): Prices continue to increase as legislation closing the DC market borders and increasing requirements take effect on the market. The 2010 vintage cleared at $255.16/SREC, while the 2011 vintage cleared at $270/SREC. Note, the SREC and capacity figures do not take into consideration the amount of electricity delivered into the district that may be exempt from complying with the Distributed Generation Amendment Act increases, considering some electricity contracts may have been signed prior to the amendment’s implementation

For historical pricing please see this link. The next SRECTrade auction covering Q3 MA2011 generation closes on Tuesday, January 17 at 5 p.m. ET. The following auction covering all markets closes on Tuesday, January 31 at 5 p.m. ET.

Tags: Auction, Prices, REC, Solar, SREC
Posted in SREC Markets, SREC Pricing | Comments Off on January 2012 SREC Auction Results