Archive for May, 2020

Washington, D.C. SREC Market Update

Posted May 22nd, 2020 by SRECTrade.

Despite market disruptions associated with COVID-19, the SREC market in Washington D.C. has remained strong over the first quarter of 2020, with consistent pricing and liquidity. Our enclosed analysis shows the fundamentals behind this dynamic, with a decreasing oversupply in 2020 & 2021, followed by undersupply into the foreseeable future.

As per the DC PSC RPS Report for Compliance Year 2019, load falls into one of three compliance buckets:

  1. Load contracted prior to October 8, 2016, which is obligated to the provisions in the DG Amendment Act of 2011.
  2. Load contracted between October 8, 2016 and January 1, 2019, which is obligated to the provisions in the Renewable Portfolio Expansion Act of 2016.
  3. Load contracted on or after January 1, 2019, which is obligated to the provisions in the CleanEnergy DC Omnibus Bill Amendment Act of 2018

Based on the DC Compliance Reports, in compliance year 2020, 18.7% of the total retail sales is exempt from the RPS Expansion Act of 2016. This load will be subject to ACP levels which are lower than current DC SREC pricing. In this analysis, compliance associated with load in this bucket will pay the compliance penalty instead of purchasing DC SRECs. The analysis also assumes that load contracts exempt from the CleanEnergy DC Omnibus Bill, will roll off in two-year equal increments after compliance year 2021.

Should you have any questions regarding the enclosed analysis or need transaction and management services, please contact us.

CA LCFS Market Update – May 2020

Posted May 8th, 2020 by SRECTrade.

The first quarter of 2020 showcased both record high pricing and a COVID-19 slump in the California Low Carbon Fuel Standard (CA LCFS) market. Credit pricing remained strong throughout January and February 2020, with spot pricing sustaining levels over ~$200 per credit and some transactions executed above the previously implied ~$213 cap. In mid-March, LCFS credit pricing dropped nearly 20% from ~$210 to approximately $170 per credit due to the impact of COVID-19. The enclosed update provides highlights on news impacting the market, a recent price trend overview, and a closer look at the Q4 2019 credit and deficit report released by CARB at the end of April.

SRECTrade offers LCFS credit management and brokerage services to electric vehicle (EV) fleet operators, OEMs, EV charging station owners, and other clean fuel asset owners. We help our clients navigate the entire LCFS process including asset registration, ongoing reporting requirements, transacting, settlement, and remittance of funds. Our domain expertise in environmental commodity markets allows us to provide our clients with industry leading regulatory and market knowledge. Please reach out to for more information.