Throughout the fourth quarter of 2020, the California Low Carbon Fuel Standard (CA LCFS) market demonstrated steady credit prices between $193 – $199 per credit. On January 29 the California Air Resources Board (CARB) released the Q3 2020 credit and deficit report. There was an overall increase in deficits and credits generated in Q3 2020 as well as a 1.5% increase in the cumulative bank. SRECTrade has been engaged with new clean fuel programs that are considering legislation across North America. The enclosed update provides highlights on news impacting the market, a recent price trend overview, clean fuel program updates, and a closer look at the Q3 2020 credit and deficit report.
SRECTrade helps you get paid on the use of zero-emission vehicles and fueling equipment that you already own, such as electric light-duty vehicles, forklifts, trucks, and charging stations. The regulations are complex and the benefits are hard to access – we make it easy for you. SRECTrade is the largest agent manager of EV assets for California’s Low Carbon Fuel Standard (LCFS) and the trusted partner across North America for similar programs already redefining equipment plans and budgets. With 150,000+ assets on its tech platform, SRECTrade manages 20 traded products in 10 regulated markets with > 99% client retention. Through SRECTrade you get paid and accelerate deployment of clean energy and transportation equipment, while minimizing time, cost, and risk of complex and diverse regulatory programs.
SRECTrade was thrilled to sponsor and send seven team members to the Women of Renewable Industries and Sustainable Energy (WRISE) 2021 Leadership Forum. Even virtually, the Forum remained thoughtfully put-together with its workshops, networking events, keynotes, and professional development one-on-one opportunities. SRECTrade applauds WRISE’s commitment to building a diverse workforce for the success of the renewable energy economy for all, especially those who are historically left out of the conversation.
More information on WRISE and how to support the work that the organization is doing can be found here.
As we near the end of 2020 and look to celebrate the holiday season, it is a good time to take a step back and reflect on the ups and downs of the year. With all elements of our personal, social, and professional lives impacted by unprecedented global events, I am thankful that SRECTrade has been able to forge ahead and cross new milestones. I regularly remind myself that many individuals and companies haven’t been as lucky.
Thank you to our clients and partners for continuing to work with us as we expand our business and services. With you, we have been able to continue our mission to accelerate the sustainable adoption of clean energy assets while focusing on making carbon reduction a reality.
Lastly, thank you to the ever-growing SRECTrade team! We’ve recently surpassed 40 employees and look forward to more growth in 2021. We have a very special group of dedicated and passionate people. Across the entire organization, the team is working hard every day to ensure we are providing high quality services and technology to make efficient access to our markets possible.
We wish everyone a happy and healthy holiday season. Stay safe and be well. We look forward to working with you in 2021 and beyond!
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.
The California Low Carbon Fuel Standard (CA LCFS) market exhibited steady credit prices in the third quarter of 2020. Throughout the quarter, credit prices remained steady around ~$195 per credit. On October 31 the California Air Resources Board (CARB) released the Q2 2020 credit and deficit report. There was an overall drop in deficits and credits generated in Q2 2020 as well as a smaller draw upon the cumulative bank most likely due to impacts of COVID-19. The enclosed update provides highlights on news impacting the market, a recent price trend overview, and a closer look at the Q2 2020 credit and deficit report.
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 firstname.lastname@example.org or (415) 763-7732 x 4 for more information.
The SREC market in Washington D.C. has seen a change in trends due to changing market conditions associated with COVID-19. Our enclosed analysis provides an update on these market conditions and evaluates future market dynamics.
Compared to our last market update – posted on May 22, 2020, we project a greater oversupply in 2020 & 2021 and our new analysis shows 2022 now slightly oversupplied in high build rate scenarios. Despite this, we expect the market to flip to undersupplied in 2023, or sooner in low build rate scenarios.
This change in dynamic can be attributed to several factors
COVID related decline in electricity sales resulting in lower SREC demand
Higher build rates resulting in higher forecasted SREC production
1.65 Last Twelve Month Avg. (MW/mo) (May Analysis) vs.
2.49 Last Twelve Month Avg. (MW/mo) (Current Analysis)
In this time of uncertainty, there are several fundamental considerations that could impact the final supply and demand figures over the next coming months. Final 2020 DC SREC production, Q4 build rates, and actual grandfathered load will need to be analyzed to determine the degree of oversupply and more accurately project future market conditions.
Should you have any questions regarding the enclosed analysis or need transaction and management services, please contact us.
Pursuant to Section 6.9.1 of the Revised Long-Term Plan, Illinois Adjustable Block Program (ABP) Approved Vendor Designees are now required to register in a new portal with the Approved Vendors with which they are partnered. This new requirement was established to help increase transparency for consumers, since they will now be able to verify the legitimacy and affiliations of an entity contacting them by reviewing the public-facing Designee database on both the ABP and Illinois Shines websites.
On Monday, October 26th, the Designee Registration Portal opened. On Friday, October 23rd, the ABP Administrator hosted a webinar to review the portal and onboarding process. SRECTrade encourages all stakeholders to review this informative resource regarding the process. For access to the presentation slides, please click HERE. To view a recording of the webinar, please click HERE.
Importantly, new Designees must register in the portal prior to working with any Approved Vendor. Existing Designees must register by Thursday, December 10, 2020to remain in compliance with ABP requirements (45 calendar days from the October 26, 2020 release of the Designee Registration functionality). Once registered, Designees should indicate all applicable roles from the following list in the portal:
Disclosure Form Designee – An entity that is permitted to generate Disclosure Forms on behalf of an Approved Vendor.
Community Solar Subscriber Agent Designee – An entity that is permitted to manage the community solar subscription information for an Approved Vendor’s community solar projects.
Marketing or Sales Designee – An entity that is designated to act as a marketing agent and/or customer acquisition agent on behalf of an Approved Vendor or Designee. This includes, among others, entities that engage in solicitations through any channel (in-person, telephone, etc.), as well as entities that perform online lead generation services.
Installer Designee – An entity that has been designated to install systems on behalf of an Approved Vendor or Designee.
October 28, 2020 Edit: To view FAQs following the October 23rd webinar and the ABP Administrator’s responses, please click HERE.
Current and interested SRECTrade Designees can email email@example.com with questions about this new requirement and onboarding process.
On April 12, 2020, Governor Ralph Northam signed the Virginia Clean Economy Act (VCEA). This Act was passed as House Bill 1526 and Senate Bill 851. Dominion and Appalachian Power Company (APCo) now have a mandatory Renewable Portfolio Standard (RPS) in their service territories. The goals of the VCEA are to establish renewable portfolio and energy efficiency standards, advance offshore wind, and advance solar and distributed generation.
Dominion and APCo may use RECs from any renewable energy facility within Virginia or the PJM territory from the years 2021-2024. Beginning in 2025, 75% of all RECs used by Dominion must come from RPS resources within Virginia. All RECs are eligible to be sold for 5 years. Dominion must be 100% carbon-free by 2045 and APCo must be 100% carbon-free by 2050.
An additional component of the VCEA is that 1% of Dominion’s RPS compliance obligation must come from in-state distributed generation solar resources (DG) smaller than 3 MW in nameplate capacity. This requirement will represent approximately 90 MW in 2021 and increase to approximately 250 MW by 2030, thus supporting the development of about 160 MW of DG solar over the next nine years. At this point in the RPS’s development, it is not clear if the carve-out will result in an openly traded SREC market or if a central procurement program will be established.
Regarding the market’s potential SREC value, the solar alternative compliance penalty (SACP) has been set at $75 in 2021 for the DG solar carve-out portion of the market and will increase by 1% annually thereafter. The SACP is the value the utilities must pay per MWh if the appropriate number of RECs are not purchased, thus acting as a soft price ceiling for the market. With an SACP of $75, SRECs in Virginia have the potential to trade at a significant premium to the Pennsylvania Tier I REC market, which is currently the only REC market that Virginia-sited solar systems can sell into. This increase in value should spur additional development and make distributed generation solar more affordable in Virginia.
It is anticipated that the certification process for solar systems will begin in 2021, but a clear process has not been established at this point. We will continue to monitor the RPS’s implementation and update our partners and stakeholders accordingly.
Earlier today, SRECTrade hosted a webinar for New Jersey Transition Incentive (TI) Program stakeholders. The webinar presented an overview of the TI Program, which features fixed-price, factorized Transition Renewable Energy Credits (TRECs), and also outlined SRECTrade’s services and onboarding process.
For access to the presentation slides, please click HERE. To view a recording of the webinar, please click the image below.
SRECTrade, Inc. is hosting a webinar to review the New Jersey Transition Incentive (TI) Program and SRECTrade onboarding process on Thursday, October 1st, at 2:00pm ET. The new program features fixed-price, factorized Transition Renewable Energy Credits (TRECs). SRECTrade is currently accepting NJ TREC facility applications, which can be submitted from your account on the SRECTrade online platform.