Archive for July, 2019

Ohio State Senate Passes Amended Nuclear Subsidy Bill, Freezing the State’s RPS by 2026

Posted July 18th, 2019 by SRECTrade.

On July 17th, the Ohio State Senate passed an amended version of House Bill 6, which provides subsidies for two nuclear plants owned by bankrupt FirstEnergy Solutions, coal plants, and utility-scale solar. Just as notably, the bill calls for a permanent freeze of the state’s Renewable Portfolio Standard (RPS) at 8.5% by 2026, a damaging blow to the state’s renewable energy sector. The Bill would also completely eliminate the state’s solar carve out beginning in 2020, gutting a key incentive mechanism for distributed generation solar in the state. Although it is still unclear, ohio-sited solar assets previously participating in the Ohio Solar Renewable Energy Credit (SREC) program, would likely be eligible for the Pennsylvania Tier I REC and Ohio REC market, should the Bill go into law.

After the Ohio House passed a version of House Bill 6 on May 29th, the Bill moved to the Senate where it was met with controversy by lawmakers and stakeholders alike. After a number of amendments to the Bill, including the removal of a provision that would have stunted wind development, it passed on Wednesday morning on the Senate floor. It now goes to the Ohio House for a concurrence vote, where it is expected to be taken up on August 1st.

Massachusetts DOER Announces SREC I and SREC II Auction Totals and Preliminary 2020 Minimum Standards

Posted July 15th, 2019 by SRECTrade.

On July 15, 2019, the Massachusetts Department of Energy Resources (DOER) announced final SRECs available for auction in this year’s Annual Solar Credit Clearinghouse Auction (SCCA) I and II, as well as the preliminary 2020 Minimum Standards for the SREC I and II programs.

The DOER confirmed that 632 certificates have been deposited for the SREC I auction, and 4,626 certificates have been deposited for the SREC II auction.

The DOER estimates a 2020 SREC I Minimum Standard of 1.6449% (764,036 MWh) for load executed under contract on or after June 28, 2013. This Minimum Standard applies regardless of which round the auction clears. Load served under contracts executed prior to June 28, 2013 will follow a Minimum Standard of 1.0071%.

The DOER estimates a 2020 SREC II Minimum Standard of 2.2485% (1,044,390 MWh) for load served under contracts executed between April 25, 2014 and May 8, 2016, and 3.8088% (1,769,130 MWh) for load served under contracts executed on or after May 8, 2016. This will only apply if the auction clears in the first two rounds. If the auction clears in the third round, the Minimum Standard will be 2.2585% for load served under contracts executed between April 25, 2014 and May 8, 2016 and 3.8188% for load
served under contracts executed on or after May 8, 2016.

Details regarding this announcement can be found here. SRECTrade will be assessing the implications of this adjustment and releasing a full market update shortly.

California LCFS Pricing Update: Pricing Ticks Back Up

Posted July 11th, 2019 by SRECTrade.

As per data released by the California Air Resources Board (CARB) on July 9th, the California Low Carbon Fuel Standard (LCFS) market saw a slight uptick in pricing this past week, increasing to a weighted average weekly price of $191.67. This is up $1.06 from last week’s average price of $190.61. The market saw a slight decrease in volume this past week with 319,948 credits transferred, down from last week’s volume of 401,628, but up from the last twelve month (LTM) weekly average of 243,170. Credit transfers continue to be high likely due to Q1 credit issuance and associated transfers.

Please click on the pricing chart below for a visualization of LTM trends.

Source: California Air Resources Board (CARB)

California LCFS Pricing Update: Bull Run Cools; Prices Remain above $190

Posted July 2nd, 2019 by SRECTrade.

As per data released by the California Air Resources Board (CARB) on July 2nd, the California Low Carbon Fuel Standard (LCFS) market saw a slight drop in pricing this past week, decreasing to a weighted average weekly price of $190.61. This is down $1.26 from last week’s average price of $191.87 and the first week we have seen a price decrease since early May. The market saw a significant increase in volume this past week with 401,628 credits transferred, up from last week’s volume of 39,827 and the last twelve month (LTM) weekly average of 239,704. This is likely due to Q1 credit issuance and associated transfers.

Please click on the pricing chart below for a visualization of LTM trends.

Source California Air Resources Board (CARB)