Create account Log in

Posts Tagged ‘Maryland’

« Older Entries

Maryland SREC Market Update

Posted July 13th, 2021 by SRECTrade.

On June 1, 2021, Maryland Governor Larry Hogan allowed Senate Bill 65 (SB 65) to pass into law without his signature. SB 65 revises Maryland’s Renewable Portfolio Standard (RPS), decreasing the solar carve-out from 2022-2029 while increasing its solar alternative compliance payment (SACP) from 2023-2029. The new law still requires 50% of MD electricity sales from Tier I renewable energy resources with a 14.5% solar carve-out by 2030.

This adjustment to Maryland’s RPS should bring a more gradual increase to the solar carve-out requirement. Our enclosed analysis projects the 2021 market and forward years to be undersupplied – we expect the degree of undersupply to increase in years 2022 and 2023 and show a moderate decrease in year 2024. The forecasted degree of undersupply seen in years 2022-2024 has seen a substantial decrease from our previous analysis due to the recent reductions in RPS. While we project that the new changes to Maryland’s RPS will decrease the degree of undersupply seen in forward years, build rates still must show a substantial increase in order to keep up with the new RPS schedule.

Current MD SREC pricing has been consistent over the last few months with 2021 SRECs pricing around $77.50, 97% of the ACP and 2022 SRECs pricing around $57.00, 95% of the ACP.

Final 2021 MD SREC production, final 2021 MD load figures, and actual grandfathered load could impact the degree of undersupply seen in 2021 and forward years.



Tags: , ,
Posted in Maryland, SREC Markets | Comments Off on Maryland SREC Market Update

Maryland Renewable Portfolio Standard Updated Without Governor’s Signature

Posted June 4th, 2021 by SRECTrade.

On Tuesday, June 1st, Maryland’s updated Renewable Portfolio Standard (RPS) took effect after Governor Larry Hogan allowed Senate Bill 65 (SB 65) to pass into law without signature. The new law still mandates that Maryland source 50% of its electricity sales from Tier I renewable energy sources by 2030, with a 14.5% solar carve-out. Notably, the law decreases Maryland’s solar carve-out from 2022-2029 and increases its solar alternative compliance payment (SACP) rate from 2023-2029. The bill originally cleared the Maryland legislature on April 12th by significant majorities.

The new law also removes black liquor, a paper mill byproduct, from the list of eligible Tier I REC resources.

SRECTrade plans to publish an analysis on the impacts that this law could have on Maryland’s SREC market in the coming weeks.

Tags: , , ,
Posted in Maryland, SREC Markets, State RPS | Comments Off on Maryland Renewable Portfolio Standard Updated Without Governor’s Signature

Maryland SREC Market Update

Posted December 15th, 2020 by SRECTrade.

Many SREC markets have been subjected to unprecedented impacts this year from the worst international pandemic in recent history, COVID-19, and Maryland is no exception. Despite some companies having to re-imagine their solar sales and installation processes, the Maryland Clean Energy Jobs Act (CEJA) continues to have a profound impact on the state’s SREC market. CEJA increased Maryland’s Renewable Portfolio Standard (RPS) to 50% by 2030 with a solar carve-out of 14.5% by 2028, more than doubling the 2020 solar requirement in the process. On the other hand, CEJA established a declining solar alternative compliance payment (SACP) schedule set at $100.00 this year but decreasing by $20.00 in 2021 and 2022 and by lower magnitudes thereafter.

In part due to the challenges posed by COVID-19, the MD market saw a decrease in solar build rates. The past 12-month average build rate from Nov. 2019 – Oct. 2020 was 7.79 MW/mo, 23.4% less than the average of 9.61 MW/mo from the 12 months prior.

The estimated 2020 electric load is also down from 2019 totals due to decreases in the commercial and industrial sectors, while residential electricity usage saw a slight increase. Our enclosed analysis projects the 2020 market to be oversupplied while forward years will see an increasingly undersupplied market – an indication that build rates must show a significant increase in order to keep up with the current RPS. The final 2020 MD SREC production, final 2020 MD load figures, and actual grandfathered load could impact the degree of oversupply in 2020 and undersupply in forward years.

Tags:
Posted in Maryland | Comments Off on Maryland SREC Market Update

House Economic Matters Subcommittee Votes Against Maryland RPS Bill

Posted March 15th, 2018 by SRECTrade.

On Wednesday, March 14th, the Maryland House Economic Matters subcommittee voted against the Clean Energy Jobs Act of 2018 (HB 1453), a bill that would have expanded the state’s Renewable Portfolio Standard (RPS). Among other measures, the bill aimed to increase the state’s RPS solar requirement to 14.5% by 2030 and its total RPS requirement to 50% by 2030; at present, the state’s RPS solar requirement is 2.5% by 2020 and total RPS requirement is 25% by 2020. A majority of the Public Utilities Subcommittee voted for an “unfavorable motion” on the bill.

The bill’s lead sponsor, House Majority Leader C. William Frick (Dem), announced the night of the 14th that he was withdrawing the bill before a full vote of the Economic Matters Committee. The 100% Clean Renewable Energy Equity Act of 2018 (HB 878), a bill designed to raise the state’s RPS to 100 percent by 2035, was also withdrawn on the 14th.

The Clean Energy Jobs Act of 2018 was supported by more than 660 faith groups, environmental organizations, unions, and civic leaders. Proponents of the bill are looking to pass the bill in 2019 after making it an important election issue this year.

For our latest Maryland SREC Market update click here. For more information on the Maryland Clean Energy Jobs Act’s proposal, please view our previous blog post on the topic here.

Tags: , , ,
Posted in Maryland, SREC Markets | Comments Off on House Economic Matters Subcommittee Votes Against Maryland RPS Bill

Maryland Governor Vetoes RPS Legislation

Posted May 27th, 2016 by SRECTrade.

Earlier this afternoon, Maryland Governor Hogan vetoed the Clean Energy Jobs – Renewable Energy Portfolio Standard Revisions bill (SB0921/HB1106). Gov. Hogan’s letter to the Speaker of the House regarding the veto can be read here, wherein the Governor sites “tax increases” as his sole reason for vetoing the RPS legislation, which would have increased the State’s Renewable Portfolio Standard to 25 percent by 2020 – up from the current obligation of 20 percent by 2022 – and allowed for the continued growth of solar and other renewables in the State.

Maryland Carve-Out - 2


Maryland SACP

The RPS bill passed in the House and the Senate earlier this year with veto-proof majorities, so there is potential for the bill to become law despite the Governor’s veto. In response to the veto, proponents of the RPS bill will look to meet with House and Senate leaders to discuss a strategy for moving forward with the bill.  Unfortunately, the veto override vote will not take place until January 2017 unless a special session is held before then. However, since a special session would require the Governor’s approval, it is unlikely that a special session will be held.

SRECTrade will continue to provide updates on the status of the Maryland RPS as we acquire new information. For more information about the Maryland SREC market, please visit our Maryland Market page here.

Tags: , ,
Posted in Maryland | Comments Off on Maryland Governor Vetoes RPS Legislation

Maryland RPS Bill Passes in the Senate

Posted April 7th, 2016 by SRECTrade.

On Wednesday, April 6th, Maryland’s Senate passed SB0921 31-14 with a bipartisan vote. The “Clean Energy Jobs – Renewable Energy Portfolio Standard Revisions” increases the Renewable Portfolio Standard to 25 percent by 2020 – up from the current obligation of 20 percent by 2022. The House version of the bill, HB1106, passed on March 21st. The consolidation of these two bills is anticipated to occur by Monday, April 11th, before advancing to Governor Larry Hogan’s desk.

On a related note, Gov. Hogan signed the Greenhouse Gas Emissions Reduction Act (SB0323) into law on Monday, April 4th, requiring the state to decrease greenhouse gas emissions by 40 percent from 2006 levels by 2030.

Tags: , , , , ,
Posted in Maryland, State RPS | Comments Off on Maryland RPS Bill Passes in the Senate

Maryland RPS Bill Passes in the House

Posted March 21st, 2016 by SRECTrade.

On Monday, Maryland’s House of Delegates voted to pass HB1106 with a 92-43 vote. The bill previously known as the Maryland Clean Energy Jobs Act of 2016 was divided into two bills last week, and HB1106 was distilled to focus on the RPS components of the original bill. HB1106, which was retitled to “Clean Energy – Renewable Energy Portfolio Standard Revisions”, schedules an increase to the state’s existing Renewable Portfolio Standard (RPS), including slight increases to the solar carve-out. The increases to the solar carve-out would result in increased demand for MD SRECs. Now that the bill has passed in the house, it will cross over to the Senate for review by the Senate Finance Committee. If SB0921 comes out of the Senate Finance Committee with a favorable report, it will go to the Senate Floor for a vote.

HB1106 was bifurcated from the jobs appropriation component of the Maryland Clean Energy Jobs Act of 2016 last week. On March 16th, the Maryland Public Utilities Subcommittee of the Economics Matters Committee passed three significant amendments to HB1106 to narrow the bill’s focus to the RPS. Notably, these amendments involved:

  • Dividing the RPS increase and workforce development components of the bill, leaving the Clean Energy Jobs Act as a stand-alone RPS bill. The Cove Point settlement funds, which would finance the workforce development processes, would be parsed into another bill, HB1404. HB1404 aims to provide funding for construction and vocational work through a new “Center for Education and Innovation.”
  • Excluding the Choptank Cooperative from state RPS requirements.  This is an extension of the RPS’s current language and allows Choptank to meet its contractual obligations with Old Dominion Electric Cooperative (ODEC), a power supply co-op in Virginia.
  • Adding sponsors to the new stand-alone RPS bill, in an effort to achieve bipartisan support of the bill.

The isolation of the RPS legislation from the workforce development components of the bill was received favorably in the House, and the bisection may help to secure the bill’s passage through the Senate Finance Committee and on the Senate Floor.

SRECTrade will continue to provide updates on the status of the Maryland RPS as we acquire new information. For more information on the Clean Energy Jobs Act, please view our previous blog post on the topic here.

Tags: , , , , ,
Posted in Maryland, SREC Markets, State RPS | Comments Off on Maryland RPS Bill Passes in the House

Clean Energy Jobs Act Introduced to Maryland’s General Assembly

Posted February 10th, 2016 by SRECTrade.

Since its introduction to the public on December 8th, 2015, the Maryland Clean Energy Jobs Act has made its way to the front doors of the Maryland General Assembly, with the recent introduction of the bill into the Senate under SB0921 and the upcoming introduction into the House of Delegates this coming Friday, February 12th. The Act proposes an increase to the state’s existing Renewable Portfolio Standard (RPS), which would include slight increases to the solar carve-out. The Act schedules a gradual increase in the state’s RPS obligation to satisfy 25 percent of its energy needs with Tier 1 renewable energy sources by 2020 – a significant advancement of the current goal of 20 percent by 2020. The solar carve-out is scheduled to increase incrementally from the current goal of 2.0 percent by 2020 to 2.5 percent by 2025.

Senator Majority Leader Catherine Pugh (D-Baltimore), Delegate Dereck Davis (D-Prince George’s), Senator Brian Feldman (D-Montgomery), and Delegate Bill Frick (D-Montgomery) have championed the concept of the bill since its inception months ago. The bill was first filed in the Senate by Senator Pugh, and was referred to the Finance Committee in its First Reading on February 5th. The bill’s introduction to the House will be this Friday, which will just beat the state’s House Bill Introduction Date, allowing the bill to bypass referral to the House Rules and Executive Nominations Committee.

While we monitor the progress of this bill on the House and Senate floors, we are continuing to project and analyze the impact that its passage could have on the Maryland solar renewable energy credit (SREC) market. Increasing the annual RPS obligation schedule will also increase the demand for SRECs and support prices in the market. In addition, the Act is anticipated to source $40 million from unallocated contributions from the state’s Strategic Energy Investment Fund, create an estimated 2,000 additional clean energy jobs, and help Maryland address climate change with clean energy.

For more information on the early stages of the Clean Energy Jobs Act, please reference our previous post on the topic from December 11th, 2015.

Tags: , , , , , ,
Posted in Maryland, SREC Markets, State RPS | Comments Off on Clean Energy Jobs Act Introduced to Maryland’s General Assembly

MEA Statement on SRECs from Maryland’s Mount St. Mary’s Project

Posted November 27th, 2012 by SRECTrade.

Today, the Maryland Energy Administration (MEA) released a letter to Maryland solar industry stakeholders announcing how the Department of General Services (DGS) and the University System of Maryland (USM) will be managing SRECs purchased from the 17.4 MW project sited at Mount St. Mary’s (MSM) University in Emmitsburg, MD.

The letter explains that DGS and USM are responsible for purchasing electricity and SRECs from 10.67 MW and 5.33 MW of the project, respectively.  The MEA goes on to explain DGS will act as a “provider of last resort” and will sell SRECs only if the market needs them. The letter also states the MEA suggested DGS set an offer price of 90% of the SACP for these excess SRECs.

Furthermore, the administration’s letter covers USM’s management plan stating that, “USM is committed to using SRECs to meet its RPS requirements, and could potentially use any surplus to meet future RPS requirements, voluntary carbon reductions, and/or potential future utility budget shortfalls. USM is cognizant of the fact that MSM’s SRECs represent a significant share of the market in 2013 and 2014, when the market is most vulnerable to potential oversupply. USM does not currently intend to sell the excess SRECs in 2013 or 2014.”

These statements demonstrate the volume of SRECs owned by DGS will only be sold in under-supplied compliance periods. USM’s management plan states the current intention to hold SRECs in the near term, but appears there could be instances in which USM’s excess SRECs are sold to help bridge budget shortfalls.

For a full copy of the MEA letter click here.

A more detailed analysis of this statement’s impact on Maryland SREC supply will be available in the SREC Market Monitor, a joint-venture between SRECTrade and Greentech Media’s GTM Research.

Tags: , , , , ,
Posted in Maryland, SREC Markets | Comments Off on MEA Statement on SRECs from Maryland’s Mount St. Mary’s Project

Maryland Solar Bills S.B. 791 and H.B. 1187 Signed Into Law

Posted May 22nd, 2012 by SRECTrade.

Today, Maryland Solar Bills S.B. 791 and H.B. 1187 were signed into law by Maryland Governor Martin O’Malley.

The passage of these bills will increase the near term Solar Renewable Portfolio Standard (RPS) requirements and reach the state’s 2% solar target two years ahead of the original RPS schedule; compliance year 2020 instead of 2022. The RPS requirements will increase beginning in the 2013 compliance year (January 2013 – December 2013).

Estimates show that the 2013 RPS increase equates to approximately 34,150 more SRECs required in 2013 under the new bills. This represents an additional 28.5 MW of solar capacity required, assuming all 2013 RPS requirements are meet using only 2013 vintage SRECs. After 2013, the RPS requirements continue to increase over the old goals, with some of the largest requirement increases estimated to begin in 2016 and onward.

As of the April 2012 SRECTrade Solar Capacity Update, total eligible Maryland solar capacity reached 45.6 MW. Based on projects registered in PJM GATS, over the last twelve months average MW capacity added per month has been 2.6 MW. The 2012 compliance year requires approximately 67,310 SRECs to be retired. As of May 11, 2012, PJM GATS reported the issuance of approximately 10,200 MD2012 SRECs. Under the new requirements, it is estimated that the MD2013 Solar RPS will require 170,800 SRECs, the equivalent of 142.3 MW operational all year long assuming only 2013 vintage SRECs are utilized to meet the state’s SREC targets.

Tags: , , , ,
Posted in Maryland, SREC Markets | Comments Off on Maryland Solar Bills S.B. 791 and H.B. 1187 Signed Into Law

« Older Entries
Clients
Markets
About
Legal

© 2024 SRECTrade, Inc. All rights reserved.