Archive for the ‘SREC Markets’ Category

Renewable Energy Coalition Proposes Doubling of Maryland RPS

Posted September 15th, 2017 by SRECTrade.

A new campaign set forth by a coalition of environmental advocates and energy leaders in Maryland, calls for a doubling of the state’s current Renewable Portfolio Standards (RPS). The campaign, dubbed the Maryland Clean Energy Jobs Initiative, aims to increase the current target of 25% renewable energy by 2020 to 50% by 2030, stimulating regional job growth, especially in low income communities, and promoting “environmental justice”. The program would require utilities and Load Serving Entities (LSEs) to purchase renewable energy certificates (RECs) representing one megawatt-hour of renewable electricity in order to comply with these standards. While the coalition acknowledges the political obstacles ahead, they are optimistic, attributing much of the political “momentum” to recent natural disasters and impacts of climate change. Organizations that have expressed support of the campaign include the NAACP, Interfaith Power and Light, SEIU 119, and the MDV SEIA.

SRECTrade to present at Solar Power International 2017

Posted September 5th, 2017 by SRECTrade.

Heading to Solar Power International (SPI) 2017 this year? Come visit the SRECTrade team! SRECTrade’s CEO, Steven Eisenberg, and CTO, Lewis Wagner, were selected to present at this year’s poster reception. The reception will be held on Monday, September 11, 2017 from 5-6 p.m. on the trade show floor.

Steven and Lewis will be presenting a poster entitled “Scaling Up Solar Incentive Markets: Standards to Unlock Innovation, Investment and Value”. The poster addresses the following:

Two technology factors with large influence on the REC market are providing open and equitable access to underlying registries and the development of software solutions that institutionalize portfolio management. SRECTrade has campaigned to open the underlying REC registries, resulting in the development of the first Application Programming Interface (API) for NEPOOL GIS and an improved API for PJM GATS. Open access to the underlying REC platforms is fundamental to the growth of renewable energy adoption. In 2017, the SREC market in PJM and MA is estimated to exceed $2b in transactions, exposing organizations to potential costly risks and operational mistakes.

Most registries do not have APIs and those that do are limited. Decision makers are resistant to change, but the benefits are clear. Open access places the cost of innovation on the market and reduces the dependency on central authorities.

To reduce portfolio management costs and mitigate risk, the ability for organizations to either buy or build software is critical. The absence of APIs prevents organizations from building or procuring services. We seek to solve this by advocating for APIs and providing comprehensive management services.

A lack of standards and access to underlying data fuels complexity and ultimately increases risk and the cost of doing business. To reduce soft costs and the burden to REC portfolio managers, the industry needs to drive towards free and open data communication. Achieving this will unlock innovation, investment and value across the market.

PJM GATS Solar – Registered Capacity Update as of August 2017

Posted August 25th, 2017 by SRECTrade.

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the PJM GATS solar REC markets that SRECTrade serves. All data is based on the information available in PJM GATS as of the date noted.

The chart above compares the megawatts (MWs) registered in PJM GATS as of August 23, 2017 (the blue bar) to the estimated RPS solar MWs needed to be operational through the duration of the current reporting year (the green bar), to meet each market’s RPS targets. The Estimated RPS MW figure can be interpreted as the amount of active capacity that would need to be online throughout the year in order to produce the obligatory megawatt hours of electricity mandated by each state’s RPS schedule.

This chart is not meant to be a final representation of SREC supply for a given compliance period, but is instead a visualization of the relationship between installed capacity relative to each state’s estimated RPS requirements converted from a MWh to MW basis. Note that the Registered MW figures do not consider eligible SRECs carried over from previous reporting years and are only used as one aspect of current market supply drawn from the current MWs registered in PJM GATS. The installed capacity operational over the indicated time period will produce SRECs which, in addition to any eligible unsold SRECs from previous periods, will make up the final supply present in the market. For estimates on required number of SRECs per reporting year across the SREC markets SRECTrade covers, please visit our state market summary pages.

As of July 31, 2017, New Jersey had installed a cumulative total of 2,231.9MW of nameplate capacity. Their Solar Installation Report and Solar Pipeline Report can be found online here on the New Jersey Office of Clean Energy website.

Additionally, please note the following in the figures presented above:

OH2017: Represents all OH eligible solar facilities and includes some facilities that are cross-registered in PA. If any systems were eligible in higher priced markets, such as DC, the capacity was excluded from OH eligibility as it could be sold at a higher price in DC.

DE2017: Represents all solar facilities eligible for the DE solar RPS requirement. Some facilities registered in DE are also eligible in PA and could impact that market’s supply.

DC2017: Includes all systems eligible for the DC SREC market. If a system was eligible in another market, it was not included there given the current pricing for DC SRECs.

PA2018: Represents all solar facilities eligible for the PA SREC market. Some systems are cross-registered in OH as well. If a system was eligible in any higher priced markets (i.e. MD or NJ sited systems that cross-registered in PA) they were not included in the total MW balance displayed above.

MD2017: Includes all MD eligible solar capacity registered in PJM GATS as of the date noted. If projects were cross-registered in Washington D.C., the capacity was not allocated to Maryland’s eligible MW total.

NJ2018: The balance noted above represents the 7/31/17 Solar Installation Report reported by Applied Energy Group.

PJM GATS Registered Solar Projects Summary

There are 151,165 facilities across 4,908.5MW registered in PJM GATS as of 8/23/2017.

500 projects are 1MW or larger in capacity, representing 2,335.4MW or 47.6% of the qualified capacity. There are 131 projects that are 5MW or larger, representing 1,615.1MW or 32.9% of all qualified capacity.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on the EIA Report “Retail Sales of Electricity by State by Provider”. 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 1,200MWh, in PJM GATS states, generated per MW of installed capacity per year.

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.

Final SMART Program Regulation Promulgated

Posted August 25th, 2017 by SRECTrade.

On Friday, August 25th, 225 CMR 20.00 Solar Massachusetts Renewable Target (SMART) Program was promulgated in the State Register. The Massachusetts Department of Energy Resources (DOER) posted the final version filed with the Secretary of the Commonwealth’s office to their website. The DOER announced that the final, promulgated version will be made available as soon as possible.

Following the promulgation of this regulation, the DOER anticipates that the electric distribution companies will jointly file a model tariff at the Department of Public Utilities (DPU), which will initiate a fully adjudicated proceeding at the DPU.

For more information on the final version of the SMART Program regulation, please visit our previous blog post on the topic here.

IL 2017 DG Procurement Round Two – Webinar

Posted August 21st, 2017 by SRECTrade.

Earlier today, SRECTrade hosted a webinar covering the upcoming IL 2017 DG Procurement Round Two, including requirements for applying facilities, IPA and SRECTrade fees, bidding mechanics, and the SRECTrade application process.

SRECTrade’s application window for Round Two is open from today, Monday, August 21st to Friday, September 8th at 5:00pm CDT.

Please feel free to reference the IL DG Procurement Fall 2017 Application Instructions HERE.

For access to the presentation slides, please click HERE. To view a video recording of the webinar, please 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.

IL 2017 DG Procurement Round Two Webinar

Posted August 15th, 2017 by SRECTrade.

SRECTrade, Inc. will be hosting a webinar covering the upcoming IL 2017 DG Procurement Round Two on Monday, August 21st, at 1:00pm CST. The October procurement round is the second of two rounds scheduled for 2017.

To register for the webinar, please click HERE.

Our application window for Round Two is open from Monday, August 21st to Friday, September 8th at 5:00pm CDT.

For more information on the upcoming procurement round beforehand, please visit our blog post on the topic here.

MA DOER Files Proposed Final Version of SMART Program Regulation

Posted August 11th, 2017 by SRECTrade.

On Friday, August 11th, the Massachusetts Department of Energy Resources (DOER) announced that it has filed its proposed final version of the Solar Massachusetts Renewable Target (SMART) Program regulation 225 CMR 20.00 with the Secretary of the Commonwealth’s Office. The DOER anticipates the final version will be published in the State Register on August 25, 2017, “with minimal to no changes”. The final but unofficial version of the regulation can be found on the DOER’s “Development of the Solar Massachusetts Renewable Target (SMART) Program” website here.

100 MW Procurement

Following comments regarding the initial 100 MW Procurement, which will be used to establish Base Compensation Rates for all participating SMART Solar Tariff Generation Units, the following changes were made to program design:

  • Each Distribution Company will issue one procurement for all projects sized 1 – 5 MW
  • All facilities in the procurement will be subject to a Ceiling Price of $0.17/kWh ($170.00/MWh)
  • Procurement results will establish unique Base Compensation Rates for the first Capacity Block of each individual Distribution Company, rather than establishing a single statewide Base Compensation Rate
  • The Base Compensation Rate for the first Capacity Block will equal the mean bid price received in each Distribution Company’s service territory

Compensation Rate Adder Caps and Rate of Decline

In its regulation filed on June 5, 2017, the DOER implemented an adder cap of 320 MW for each individual Compensation Rate Adder in an effort to “place boundaries around overall program costs”. In response to comments regarding these adder caps, the following changes were made:

  • Adder caps are eliminated
  • Each Compensation Rate Adder will decline by 4% for every capacity tranche established, and the Adder will not decline as Capacity Blocks are filled. The first capacity tranche for each Adder will equal 80 MW, with future segment sizes established by the DOER as they are filled

Project Segmentation

Following comments regarding the rules set forth by the DOER around parcel limits and project segmentation, the following modifications were made:

  • Added Canopy Solar Tariff Generation Units to allowable exceptions to rules, allowing canopies to be sited on same parcel as a Building Mounted Solar Tariff Generation Unit
  • Allow Solar Tariff Generation Units to be sited on adjacent parcels if owners can demonstrate to the DOER’s satisfaction that they are unaffiliated parties
  • Allow Solar Tariff Generation Units to span multiple parcels if located behind a single interconnection point, single meter, with a nameplate capacity of 5 MW or less
  • Added language to exempt projects from project segmentation rules if the applicant can demonstrate that necessary qualification documents were obtained by June 5, 2017
  • Added language that allows the DOER to exempt projects from project segmentation rules for good cause on a case by case basis

These project segmentation rules were initially established to prevent Solar Tariff Generation Units from manipulating program rules for their own financial benefit.

Land Use and Performance Standards

The DOER has also set forth rules to ensure that land use is considered when siting projects through the differentiation of incentive levels based on project location. In response to comments regarding these rules, the following changes were made:

  • Removed certain special provisions for Agricultural Solar Tariff Generation Units from the regulation; instead, these provisions are detailed in a separate Guideline
  • Added definition and special provisions for Floating Solar Tariff Generation Units, with an associated $0.03/kWh Compensation Rate Adder
  • Added language to exempt projects from being subjected to Greenfield Subcontractors if the applicant can demonstrate that necessary qualification documents were obtained by June 5, 2017
  • Classified all land that had been previously categorized as Category 1 Land Use, regardless of zoning
  • Clarified aspects of the performance standards requirements

Other

In response to other comments received by stakeholders, the DOER also instituted the following changes:

  • Modified definitions of Community Shared Solar Tariff Generation Unit, Low Income Community Shared Solar Tariff Generation Unit, and Low Income Property Solar Tariff Generation Unit to clarify that Units will qualify as such if taking advantage of the alternative on-bill credit
  • Established a 35% per Capacity Block limit on the quantity of facilities with a nameplate capacity of less than or equal to 25 kW
  • Added language prohibiting capacity expansions, with specific exceptions
  • Provided further clarity regarding customer disclosure forms and added requirements regarding forms to special provisions for Community Shared Solar Tariff Generation Units and Low Income Community Shared Solar Tariff Generation Units
  • Modified timing of initial competitive procurement
  • Modified formula for calculating the incentive payments for Behind-the-Meter Solar Tariff Generation Units to be the sum of the three-year average of Basic Service Charges, in addition to current Distribution, Transmission, and Transition charges
  • Other technical updates and clarifying modifications

The DOER will notify stakeholders when the regulations have been published in the State Register in final official form.

MA Global Warming Solutions Act Regulations Promulgated

Posted August 11th, 2017 by SRECTrade.

On Friday, August 11th, the Massachusetts Department of Environmental Protection (MassDEP) published six final regulations to reduce statewide greenhouse gas emissions in the Massachusetts Register. These regulations follow the Supreme Judicial Court’s May 17, 2016 ruling in Kain v. DEP and Governor Baker’s September 16, 2016 Executive Order No. 569 (“Establishing an Integrated Climate Change Strategy for the Commonwealth”) to help ensure compliance with the 2020 statewide emissions limit established by the Global Warming Solutions Act (GWSA).

The six regulations and amendments include:

  • 310 CMR 7.72: Reducing Sulfur Hexafluoride Emissions from Gas-Insulated Switchgear (amended)
  • 310 CMR 7.73: Reducing Methane Emissions from Natural Gas Distribution Mains and Services (new)
  • 310 CMR 7.74: Reducing CO2 Emissions from Electricity Generating Facilities (new)
  • 310 CMR 7.75: Clean Energy Standard (new)
  • 310 CMR 60.05: Global Warming Solutions Act Requirements for Transportation (amended)
  • 310 CMR 60.06: CO2 Emission Limits for State Fleet Passenger Vehicles (new)

For more information on these regulations, including Fact Sheets, please visit the MassDEP website on the topic.

MA Solar Credit Clearinghouse Auction Result Announcement

Posted July 24th, 2017 by SRECTrade.

On July 24th, 2017, the Massachusetts Department of Energy Resources (DOER) announced that all of the MA2016 SREC-Is and SREC-IIs submitted to the auction account were transacted in the first round of the Solar Credit Clearinghouse Auction (SCCA). A total volume of 195,464 SREC-Is were bid on across 34 unique bidders, creating more than sufficient demand to clear the available auction volume of 18,428 SREC-Is.

The SREC-II auction followed suit, with a total bid volume of 303,956 across 11 unique bidders outweighing the available auction supply of 243,377 SREC-IIs.

DOER and EnerNOC are in the process of certifying and finalizing the auction results. More information will be made available on the SCCA auction page in the coming weeks.

If SRECTrade submitted SRECs to the SCCA on your behalf, we will provide further notice on the status of your transaction once the DOER and EnerNOC provide us with finalized auction results.

Massachusetts DOER Preliminary 2018 Compliance Obligation Announcement

Posted July 20th, 2017 by SRECTrade.

On Wednesday, July 19th, the Massachusetts Department of Energy Resources (DOER) announced the preliminary Minimum Standards and Compliance Obligations for 2018 Solar Carve-out (SREC-I) and Solar Carve-out II (SREC-II). The DOER notes that these numbers only represent preliminary estimates and final numbers will be released no later than August 30th.

SREC-I

Based on current load capacity projections, the DOER estimates that the 2018 Compliance Obligation and Minimum Standard for the SREC-I Program will be approximately 838,995 MWh and  1.7903%, respectively, for load served under contracts on or after June 28, 2013.  If the 2017 SREC-I auction does not fully clear, these values will be increased to 857,423 MWh and 1.8296%, respectively.

For load served under contracts executed before June 28, 2013, the 2018 Minimum Standard will be 1.1411%.

SREC-II

The DOER estimates that 2018 Compliance Obligation and Minimum Standard for the SREC-II Program will be 1,347,902 MWh and 2.8762%, respectively, for load served under contracts before May 8, 2016. If the auction does not fully clear, these values will be increased to 1,591,279 MWh and 3.3955%.

To calculate this baseline Minimum Standard and Compliance Obligation, the DOER first determined the expected MWh/year that would have resulted had the SREC-II Program Capacity Cap remained 947.7 MW by:

  1. Identifying the percentage share of MW capacity currently qualified under each SREC-II Market Sector;
  2. Multiplying these percentages by the original 947.7 MW SREC-II Program Capacity Cap;
  3. Multiplying these totals by (1) their respective SREC Factors, (2) a 13.71% expected capacity factor, and (3) 8,760 hours/year.

The DOER then summed these values and combined the remaining auction volumes and banked SREC-II volume from the 2016 Compliance Filings resulting in a total baseline Compliance Obligation and Minimum Standard.

In addition, the DOER estimates the Compliance Obligation and Minimum Standard for load contracts signed after May 8, 2016 to be 1,923,743 MWh and 4.1049%. respectively. If the auction does not fully clear, these values will be increased to 2,167,120 MWh and 4.6242%, respectively.

The official announcement can be found here.