Massachusetts Post-400 MW Solar Program Proposal

Posted April 22nd, 2013 by SRECTrade.

Some projections show installed PV capacity eligible for the MA Solar Carve-Out Program, otherwise known as the MA SREC program, reaching 400 MW as early as 2014. Once the current SREC market reaches 400 MW no other projects will be eligible for participation in the current program. In preparation for the approach of the 400 MW cap, the DOER held a “Post-400 MW Solar Policy Stakeholder Meeting” in Boston on March 22, 2013, attended by SRECTrade’s own Alex Sheets.

The purpose of the meeting was to discuss the DOER’s post-400 MW program proposals, including the need for additional clarifications on an “Assurance of Qualification” queuing process for projects wishing to participate in the current iteration of the SREC program. After the meeting’s conclusion, the DOER requested additional formal comments and suggestions. The DOER has since issued guidance on Assurance of Qualification process as well as public comments on the size and shape of a solar incentive program after the 400 MW cap is reached for the current program.

Assurance of Qualification Guideline

In its April 12, 2013 email the DOER summarized the main points of its draft Assurance of Qualification (queuing process) proposal. The draft guideline can be viewed here and we reprint the DOER’s own draft bullet points here:

  • Establishes a list of criteria for determining what constitutes a “complete” application.
  • Creates an exception for small generation units (<30kW DC) that exempts them from meeting the same criteria that larger projects must meet in order to qualify.
  • Establishes a set-aside of the 400 MW DC program cap specifically for small generation units that is equal to 60 MW DC. This 60 MW set-aside includes just over 30 MW of small generation units that are already qualified and operational and helps ensure that the residential and small commercial sector will be protected from any market disruptions in the event the 400 MW program cap is reached before a new program is in place.
  • Establishes a reservation period of 9 months for projects that have obtained an Assurance or Statement of Qualification. Units must be interconnected within this reservation period or will lose their Assurance or Statement of Qualification. It also provides for extensions of this reservation period in certain situations.
  • Creates a list of permissible and prohibited changes that can be made to a project after it receives its Assurance or Statement of Qualification.

Post-400 MW Solar Policy Proposals

The DOER posted all written proposals for a post-400 MW program here. A wide spectrum of proposals were submitted. However, suggestions predictably ranged from the implementation of a feed-in-tariff program to the development of a parallel SREC program, similar to the current one. In general it appears that the majority of stakeholders support the continued implementation of an SREC-based policy.

SRECTrade will continue to closely monitor the development of both post-400 MW policy as well as the Assurance of Qualification process and will periodically update this blog with updates.

 

 

Massachusetts DOER Clearinghouse Auction Update

Posted April 19th, 2013 by SRECTrade.

The Massachusetts SREC market is unique among SREC markets in that it is underlain by a price support mechanism called the DOER Solar Credit Clearinghouse Auction. The DOER Solar Credit Clearinghouse Auction is held no later than July 31st in years in which SRECs are deposited into the DOER auction account. The rules of the MA SREC market require that unsold SRECs be placed in the DOER auction account by June 15, 2013. SRECs placed in the DOER’s auction are sold at a set price of $285/SREC, after DOER administrative fees.

The DOER Solar Credit Clearinghouse Auction does not require buyers to participate and purchase SRECs for any volume, but a variety of compliance incentives encourage participation. For this reason, market participants view the price support attributes of the DOER auction with caution. There is no guarantee that SRECs placed in the DOER auction will be sold.  After multiple rounds of the auction, if any unsold SRECs remain they are transferred back to the original owner. These unsold SRECs, now no longer eligible for future DOER auctions, are reissued with a new useful life in the following three compliance periods. For example, a 2012 SREC not sold in the July 2013 DOER auction will be reissued to the original owner with eligibility in 2013, 2014, and 2015. This reissued SREC must be transacted in one of these three compliance periods.

The MA SREC market is over-supplied for the first time in the short history of the MA solar program (the MA SREC market started in 2010). There are approximately 45,000 more MA2012 SRECs available than are required, all of which will likely be deposited in the DOER Solar Credit Clearinghouse Auction. All client’s utilizing SRECTrade’s EasyREC services will have any unsold MA2012 SRECs automatically transferred into the DOER auction account. Any sellers managing their own NEPOOL GIS account should know that their SRECs need to be manually transferred to the DOER auction account on or before June 15, 2013. For instructions on how to do so click here.

Massachussetts DOER Auction 40 Quarter Opt-In Deadline Now July 15th

Posted April 18th, 2013 by SRECTrade.

The Massachusetts Department of Energy Resources (DOER) sent out a general letter on April 12, 2013 clarifying the deadline for submitting an application to guarantee the 10 year/40 Quarter DOER Auction Opt-In Term. The new deadline is July 15, 2013. SRECTrade had originally communicated that the deadline was June 20, 2013 based on previously provided DOER information. SRECTrade will be be able to process EasyREC applications for the 10-year Opt-In Term if submitted by July 1, 2013. The earlier an application is submitted, the easier it will be to ensure that applications are processed in a timely fashion. We encourage early submission of applications.

Successful acceptance into the 10 year/40 Quarter DOER Auction Opt-In term begins upon the statement of qualification date. For example, if a project is accepted in Q3 2013, but not interconnected until Q1 2014, the project will forego 2 quarters (i.e. Q3 and Q4 2013) of DOER auction eligibility.

What is required to submit an application that qualifies for the 10 year Opt-In Term?

  • Completed EasyREC application (without letter of interconnection)
  • Must be submitted to SRECTrade before July 1, 2013
  • Proof of applicable state and local permits is required for projects greater than or equal to 1 MW

SRECTrade SREC Markets Report: March 2013

Posted April 10th, 2013 by SRECTrade.

SRECTrade SREC Markets Report: March 2013

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade currently serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.

A more detailed analysis of supply, demand and price trends in the SREC markets can be found in the SREC Market Monitor, a joint-venture between SRECTrade and Greentech Media’s GTM Research.

A PDF copy of this table can be found here.

Capacity_March2013

***NJ Capacity Update as of 3/31/13*** Through March 2013 NJ installed capacity reached approximately 1,026 MW of installed solar capacity; a 18 MW increase over the prior month. The number in the table above represents all capacity registered in GATS as of the date noted. The remaining capacity will be registered and receive SREC credit from the date of project interconnection.

Overview of PJM Eligible Systems

As of April 9, 2013 there were 33,116 solar PV and 679 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 225 (0.67%) have a nameplate capacity of 1 megawatt or greater. Twenty-four of these projects have a nameplate capacity of 5 MW or greater. New Jersey continues to host most of the larger scale facilities, claiming home to 62.5% of the projects, 15 of 24 facilities, that are equal to or greater than 5 MW. The three largest projects are a 29.1 MW FirstSolar project in MD, the 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.

Massachusetts DOER Qualified Projects

As of April 17, 2013, there were 5,532 MA DOER qualified solar projects; 5,485 operational and 47 not operational. Total qualified capacity is 239.1 MW, 207.2 MW of which is operational and 31.9 MW not operational. Electricity suppliers providing power to the state need to acquire approximately 73,400 SRECs in 2012. According to NEPOOL GIS, 119,247 MA2012 SRECs have been issued for the current compliance year.

How to Interpret This Table

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 with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. 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.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” updated 10/1/12. 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.

 

 

MD and DC SREC Market Webinar Posted

Posted March 28th, 2013 by SRECTrade.

On Thursday, 3/28/2013, SRECTrade recorded a webinar covering the MD and DC SREC markets. The webinar can be viewed by clicking the image below. A .pdf version of the slides is available here. For questions about selling or buying SRECs in the MD or DC SREC markets please contact us at 877-466-4606 or customerservice@srectrade.com.

MD and DC Webinar Image 2013-03-28

2013 SRECDelaware Webinar Posted

Posted March 22nd, 2013 by SRECTrade.

SEU LogoSRECTrade hosted a webinar on Thursday, 3/21/2013 covering the 2013 SRECDelaware Program. The webinar reviewed the basic rules of the Program as well as the application process. The webinar recording can be viewed by clicking this link.

2013 SRECDelaware Program Webinar, Thursday, 3/21/2013 at 3 pm

Posted March 20th, 2013 by SRECTrade.

SEU Logo

A webinar covering the 2013 Delaware SREC Procurement Program (SRECDelaware) will be held at 3 pm ET on Thursday, 3/21/2013. To register for the webinar please click here.

The webinar will be recorded and posted on www.srecdelaware.com for reference.

The 2013 Delaware SREC Procurement Program will begin to accept new applications starting March 25, 2013. The application window will close on April 12, 2013 and results will be announced on April 20, 2013.

Key facts about the 2013 SREC Procurement Program:

    • All applications are bid based. Contracts are awarded to the lowest bidders.
    • SRECs produced on or after June 2013 are eligible.
    • Contracts are awarded within tiers which are outlined below:
New Systems – final interconnection on or after April 2nd, 2012
Tier Nameplate Rating – (DC at STC)  SRECs in Tier
N-1 Less than or equal to 30 kW 1,200
N-2 Greater than 30 kW but less than or equal to 200 kW 1,400
N-3 Greater than 200 kW but less than or equal to 2 MW 1,400
Existing Systems – final interconnection before April 2nd, 2012
Tier Nameplate Rating – (DC at STC)  SRECs in Tier
E-1 Less than or equal to 30 kW 1,500
E-2 Greater than 30 kW but less than or equal to 2 MW 1,500

MD and DC SREC Market Webinar on Thursday, 3/28/2013 at 3 pm ET

Posted March 13th, 2013 by SRECTrade.

MD and DC Webinar Image 2013-03-28
SRECTrade will host a webinar covering the Maryland and Washington, DC SREC markets on Thursday, 3/28 at 3 pm ET. As with previous state market focused webinars, SRECTrade will cover MD and DC specific market trends and capacity projections. Additionally, we will address options clients have for selling SRECs through SRECTrade.

Register here: https://srectrade.clickwebinar.com/MD_and_DC_SREC_Market_Webinar

March 2013 SREC Auction Results

Posted March 12th, 2013 by SRECTrade.

SRECTrade’s March 2013 SREC Auction closed on 2/28/13. Below are the clearing prices by vintage across the markets covered in the auction.

March SREC Prices SREC Vintage Year
State 2011 2012 2013*
Delaware
Maryland $135.00 $128.00
Massachusetts $220.00
New Jersey $100.00 $105.56 $112.00
Ohio In-State $40.00
Ohio Out-of-State $5.99
Pennsylvania $10.00
Washington, DC $386.12 $381.12

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage SRECs are generated beginning in June of 2012.
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.

For detailed analysis of SREC market prices and trends please subscribe to the SREC Market Monitor, a joint publication of Greentech Media’s GTM Research and SRECTrade.

State Market Observations:

Delaware: No DE SRECs transacted in the March auction. Most demand for DE SRECs will be through the DE SEU SREC Procurement Program solicitations. For the latest information on the upcoming 2013 solicitation click here: 2013 DE Program Announcement.

Maryland: MD2012 and MD2013 SRECs transacted at $135/SREC and $128/SREC, respectively, in the March auction. While MD12s in the over the counter (OTC) market transacted higher in the middle of the month, demand subsided at the end of the month. Compliance obligations for 2012 are currently being finalized.

Massachusetts: MA2012 SRECs traded at $220/SREC. OTC transactions have trended at the same levels between $220 and $230/SREC. SREC issuance volumes in Q1-Q3 2012 and October – December 2012 MWhs reported to the MA CEC demonstrate that 2012’s requirements have been met. The next SREC issuance for Q4 2012 generation will fall on April 15, 2013. The 2012 market will be oversupplied by approximately 50% of this year’s compliance obligation. On 2/27/13, the DOER announced proposed rule changes.

New Jersey: NJ2012 and NJ2013 SRECs traded up to $105.56 and $112/SREC, respectively. The NJ Office of Clean Energy announced total installed capacity through January 2013 was estimated to be 973.4 MW, a monthly increase of approximately 17.4 MW. Over the past few days OTC transactions have trended down to come inline with the March auction pricing. New Jersey’s regulated utilities will be hosting an auction for upwards of 60,000 NJ2013 SRECs on March 19. This auction will decrease demand and may result in continued downward pressure on SREC pricing.

Ohio: OH2013 Sited SRECs transacted at $40/SREC and OH2013 Adjacent SRECs traded at $5.99/SREC. There was no sale of the 2012 vintages indicating the lack of demand and oversupply in the market. 2013 is expected to continue to experience oversupply and minimal demand. Most demand for OH Sited SRECs has been fulfilled through long term agreements with large utility scale projects or through long term RFPs with the state’s regulated utilities. 2012 compliance obligations are currently being finalized.

Pennsylvania: PA2013 SRECs traded at $10/SREC, in line with the February 2013 auction. OTC transactions have been pricing slightly higher. SREC oversupply continues to impact PA’s market. 

Washington, DC: The 2010 and 2012 vintages increased to $355 and $386.12/SREC, respectively. Additionally, DC2013 SRECs traded at $381.12. Compliance entities are currently finalizing obligations for 2012. It is expected the market will continue to experience under supply into the 2013 trading year.

For historical auction pricing please see this link. The next SRECTrade auction closes on Monday, April 1 at 5 p.m. ET and will cover PJM Solar RECs. The next MA Solar REC auction will close on Monday, April 15 after the Q4 2012 NEPOOL GIS issuance. Click here to sign in and place an order.

SRECTrade SREC Markets Report – February 2013

Posted March 12th, 2013 by SRECTrade.

SRECTrade SREC Markets Report: February 2013

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade currently serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.

A more detailed analysis of supply, demand and price trends in the SREC markets can be found in the SREC Market Monitor, a joint-venture between SRECTrade and Greentech Media’s GTM Research.

A PDF copy of this table can be found here.

Capacity_February2013

***NJ Update: Installed Capacity Surpasses 1 GW of Solar*** Through February 2013 NJ installed capacity reached approximately 1,008.4 MW of installed solar capacity; a 35 MW increase over the prior month. The number in the table above represents all capacity registered in GATS as of the date noted. The remaining capacity will be registered and receive SREC credit from the date of project interconnection.

Overview of PJM Eligible Systems

As of March 11, 2013 there were 31,932 solar PV and 663 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 213 (0.65%) have a nameplate capacity of 1 megawatt or greater. Twenty three of these projects have a nameplate capacity of 5 MW or greater. New Jersey continues to host most of the larger scale facilities, claiming home to 65.2% of the projects, 15 of 23 facilities, that are equal to or greater than 5 MW. The three largest projects are a 29.1 MW FirstSolar project in MD, the 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.

Massachusetts DOER Qualified Projects

As of March 13, 2013, there were 4,962 MA DOER qualified solar projects; 4,945 operational and 17 not operational. Total qualified capacity is 214.6 MW, 195.4 MW of which is operational and 19.2 MW not operational. Electricity suppliers providing power to the state need to acquire approximately 73,400 SRECs in 2012. According to NEPOOL GIS, 91,684 Q1 – Q3 2012 SRECs have been issued for the year to date. Additionally, 25,750 MWhs were reported to the MassCEC production tracking system for the 3 months covering October-December 2012.

How to Interpret This Table

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 with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. 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.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” updated 10/1/12. 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.