Archive for April, 2012

Delaware SREC Program Results Announced

Posted April 18th, 2012 by SRECTrade.

On Wednesday, April 18th, SRECTrade announced Tier 1 and 2a results for the Delaware Pilot Procurement Program. The results can be found here on the Program site. Results for Tier 2b and 3 (systems between 250 and 2,000 kW) are not yet finalized.

For Tier 1 and 2a, during the random selection process, applications that represented PV systems with both Delaware parts and labor were automatically sorted above applications with just Delaware parts or just labor. Applications that did not qualify for either Delaware parts or labor were sorted last.

A fixed amount of SRECs were required to be purchased within each Tier.  For example, Tier 1 required 2,972 SRECs per year. After sorting the systems, their cumulative SREC production was calculated. Applications were accepted down the sorted list until the 2,972nd SREC requirement was met. All other systems were not accepted into the Program. Overall the Pilot solicitation attracted the equivalent of 6,610 SRECs from Tier 1 qualified systems. As such, there were enough systems with Delaware parts and labor alone to meet the 2,972 SREC requirement for the Tier 1 solicitation.

The Delaware Pilot SREC Procurement Program is a partnership between Delmarva, the largest retail utility in Delaware and the Delaware Sustainable Energy Utility. The Program is designed to source all of Delmarva’s SRECs while guaranteeing eligible PV system owners a 20-year fixed price contracts for their SRECs.

MA2011 SREC Auction Closes at $540/SREC

Posted April 18th, 2012 by SRECTrade.

The Q4 2011 (October – December 2011 generation) MA SRECs were issued on April 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 Q4 2011 issuance, SRECTrade recently held a separate auction for MA2011 SRECs.

The auction order window closed on Monday, April 16th 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.

The next SRECTrade Solar REC auction order window closes on Tuesday, May 1 at 5 p.m. ET. This auction will cover all of the PJM SREC markets including DC, DE, 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 5:00 p.m. close on May 1.

The next issuance of MA Eligible SRECs will be on July 15, 2012, and will cover the first quarter of 2012 eligible SRECs. The MA market continues to see a lot of installation and development activity, which has already put downward pressure on the price of 2012 vintage SRECs. Recent bid and offer activity in the over the counter markets has been at levels of approximately 50-65% of the 2012 $550 Solar Alternative Compliance Payment (SACP).

Solar Capacity in the SREC States – March 2012

Posted April 9th, 2012 by SRECTrade.

SRECTrade SREC Markets Report: March 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.

PJM Eligible Systems

As of this writing, there were 23,871 solar PV and 287 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these eligible systems, 139 (0.58%) have a nameplate capacity of 1 megawatt or greater, of which 14 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 New Jersey is 12.5 MW. The third largest system, at 12 MW, is located in Ohio.

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 April 4, 2012, 27.8 MW of solar capacity was registered and eligible to create DE SRECs in PJM GATS. 11.2 MW of the 27.8 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*. Additionally, the DE SREC Pilot Program solicitation is under way, with a portion of the capacity tiers already closed. As of April 8, 2012, PJM GATS reported the issuance of approximately 19,600 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: The end of February marked the first issuance period of MD2012 SRECs in PJM GATS. As of April 4, 2012, 44.0 MW of MD sited solar capacity was registered to create MD eligible SRECs. 2012 Solar RPS requirements are estimated at 56.1 MW or approximately 67,310 SRECs. Legislation is making its way through the MD legislature to pull forward the RPS requirements. As of April 8, 2012, PJM GATS reported the issuance of approximately 5,500 MD2012 SRECs. Additionally, all out of state MD systems are no longer eligible to produce MD certified SRECs and their MD certification numbers have been removed from their systems in PJM GATS. Lastly, there are MD sited SRECs available from prior eligible periods, which could be utilized for compliance needs in 2012.

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, assuming all requirements were met with current vintage year SRECs. As of April 4, 2012, 670.9 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 670.9 MW figure. As of February 29, 2012 the NJ Office of Clean Energy (NJ OCE) reported that 689.1 MW of solar had been installed in NJ. As of April 8, 2012, PJM GATS reported the issuance of approximately 386,500 NJ2012 SRECs.

NJ Chart

Ohio: Ohio’s 2012 RPS solar target requires approximately 95,300 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 April 4, 2012, 44.9 MW of in-state capacity and 84.0 MW of out-of-state capacity were eligible to generate OH SRECs. A large increase of in state capacity recently came from a 9.8 MW project sited at the Campbell Soup facility in Napoleon, OH. As of April 8, 2012, GATS issued approximately 5,200 in-state and 11,200 out-of-state OH2012 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 April 4, 2012, 187.9 MW of solar capacity was registered and eligible to create PA compliant SRECs. As of April 8, 2012, PJM GATS reported the issuance of approximately 124,500 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 2012 RPS amended solar target requires approximately 61,180 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 April 4, 2012, 23.1 MW of capacity was eligible to generate DC SRECs. Additionally, as of April 8, 2012, GATS reported the issuance of approximately 3,100 DC2012 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 April 5, 2012, there were 1,728 MA DOER qualified solar projects; 1,698 operational and 30 not operational. Total qualified capacity is 64.1 MW, 53.7 of which is operational and 10.4 not operational. Electricity suppliers providing power to the state need to acquire approximately 62,900 and 73,400 SRECs in 2011 and 2012, respectively. Through the Q3 2011 issuance period (1/15/12), 19,257 SRECs have been minted. Additionally, more than 7,000 MWh have been reported to the PTS during Q4 2011. 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

For additional analysis on the current state of the MA SREC market and an outlook on 2012 see the following post published on March 16, 2012: Massachusetts SREC Market Update – March 2012

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.

Delaware SREC Pilot Program Closes for Tiers 1 and 2a, Still Open for Tiers 2b and 3

Posted April 6th, 2012 by SRECTrade.

The Delaware SREC Pilot Procurement Program reached a milestone today. The solicitation period (window for submitting applications) closed today at 5 pm Eastern Standard Time for Tier 1 and 2 photovoltaic systems (PV systems <250 kW DC). SRECTrade is contracted by the Delaware SEU to run the Pilot Procurement solicitation. Successful applicants will be guaranteed 20-year contracts for their SRECs, but not all applicants will be successful because of capacity limitations set in place by the state. The application rules and contract values vary depending on system size. The application form and guidelines are provided on the SRECDelaware website.

Tiers 2B and 3 are still open until 5:00 EST on Friday, April 13th.  Any facilities that did not bid in Tier 1 or 2A may still bid in Tier 2B regardless of size, however they have to meet the requirements of a Tier 2B system and must submit a bid price.  Any system that bid in Tier 1 or 2A may not bid in Tier 2B and any systems that do so will have both bids disqualified.

All applications for Tier 1 and 2A must have been received by 5:00 pm Eastern Standard Time on Friday and all bid deposits must have been initiated prior to that time.  SRECTrade will continue to update the status of individual applications status as bid deposits are received on Monday. We will contact any facilities requiring minor corrections during the week of April 9-13.

Maryland Update – Senate Passes SB791

Posted April 4th, 2012 by SRECTrade.

Today, the Maryland Senate voted 37-9 in favor of Senate Bill 791. We have been following this piece of legislation closely and have provided estimates and analysis around its impact on the Maryland Solar REC market.

Overall, the legislation pulls forward the Solar RPS requirements, reaching the existing 2022 Solar % requirements in 2020. The chart below demonstrates the existing requirements vs. the proposed requirements under the new legislation.

MD Solar RPS Current vs. HB1187

The next step for the bill is to move on to the Governor’s office to be signed into law.  Maryland stakeholders expect the legislation to be well received by the Governor who will likely sign the bill in May.

We’ll continue to provide updates as the bill is finalized and signed into law. Before then we should point out this bill was successfully promoted in part due to the efforts of the Maryland-DC-Virginia Solar Energy Industries Association (MDV-SEIA) and strong grassroots support from Maryland stakeholders at large.

April 2012 SREC Auction Results

Posted April 4th, 2012 by SRECTrade.

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

April SREC Prices Energy Year Ending
State 2010 2011 2012*
New Jersey $135.00
Ohio In-State $234.99 $185.00
Ohio Out-of-State $17.50 $30.00
Pennsylvania $20.00 $20.00
Washington, DC $250.00 $277.50 $290.00

*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.

State Market Observations:

Please note, all capacity references are from the February capacity analysis and reference the amount of supply registered as of the end of February. The demand noted is the estimated capacity needed to be operational all year long for the current compliance period. Additional details regarding SREC issuance and older vintages impacting the RPS requirements are noted in the capacity analysis.

Delaware (Supply: 27.1 MW | Demand: 19.8 MW): No DE SRECs transacted in the April auction. The Delaware PSC approved the SREC Procurement Pilot Program for long term contract solicitations. The solicitation window opened this week.

Maryland (In-state Supply: 41.8 MW | Demand: 56.1 MW): No MD SRECs transacted in the April auction. Legislation to pull forward the Solar RPS requirements passed the Senate today in a vote of 37-9.

Massachusetts (Operational Supply: 52.6 MW | 2011 Demand: 55.7 MW, 2012 Demand: 65.0 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 on April 16, 2012. See the following link for an update on the MA SREC market: Massachusetts SREC Market Update – March 2012.

New Jersey (Supply: 689.1 MW | Demand: 368.3 MW): The 2012 market declined to $135. The continued decline in 2012 pricing reflects the substantial amount of supply currently installed relative to the 2012 and future compliance requirements.

Ohio (In-State Supply: 44.0 MW; Out-of-state Supply: 81.3 MW | Demand: 79.4 MW) : OH2011 sited SRECs increased to $234.99 as compliance obligations are being finalized for the year. 2012 pricing for in-state SRECs declined to $185. The out-of-state SREC market declined to $17.50 and $30 for the 2011 and 2012 vintages, respectively. This decline is driven by the oversupply from PA as well as the other adjacent states not having their own SREC programs.

Pennsylvania (Supply: 182.0 MW | Demand 41.2 MW): PA2011 SRECs traded up from $10 to $20, while we saw a slight decrease in the 2012 vintage to $20.

Washington, DC (Supply: 23.1 MW | Demand: 51.0 MW): The 2010 vintage saw a decline from $275 to $250/SREC, while the 2011 DC SRECs increased slightly to $277.50/SREC. Compliance year 2012 SRECs traded at $290/SREC.

For historical pricing please see this link. The next SRECTrade auction closes on Monday, April 16 at 5 p.m. ET and will cover MA2011 SRECs. The next PJM Solar REC auction will close on Tuesday, May 1 at 5 p.m. ET. Click here to sign in and place an order.

Update – Maryland Proposes New Solar Legislation

Posted April 2nd, 2012 by SRECTrade.

Since our last update on legislation to adjust the Solar RPS requirements in Maryland, there has been some movement in both the House and the Senate.

After HB1187 passed out of the House Economic Matters Committee, the bill was heard on the floor of the House and passed unanimously 131-0. Earlier last week, the Senate version of the bill, SB791, was voted down in the Senate Finance Committee, 4-7. The bill was then reconsidered by the committee the other day with the original vote being overturned, 8-2 (with one abstention).

The next stage for SB791 is to bring it up for vote on the floor of the Senate. Stakeholders expect this will take place Monday or Wednesday of this week. Some have expressed that the bill may be met with some resistance from the Senate, but it is expected that should it pass out of the Senate it will be well received by the Governor.

If you have an interest in voicing your thoughts on this piece of legislation, feel free to visit this link to find your appropriate representative. We’ll continue to provide updates through our blog as the bill makes its way through the process.