July 2013 Auction Results

Posted July 12th, 2013 by SRECTrade.

SRECTrade’s July 2013 SREC Auction closed on 7/02/13. Below are the clearing prices by vintage across the markets covered in the auction.

July SREC Prices SREC Vintage Year
State 2011 2012 2013*
Delaware $10.00
$125.00 $130.00
New Jersey $115.25 $115.25 $120.25
Ohio In-State
Ohio Out-of-State $12.00
Pennsylvania $8.00 $10.00
Washington, DC $470.00 $470.00

*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.

State Market Observations:

Delaware: Current vintage DE SRECs traded at $10/SREC- down from $35 in the previous auction. The DE SREC market is highly illiquid. Transactions for DE SRECs tend to happen in spurts. Sale opportunities should be taken advantage of when available for systems that are not contracted under Delmarva Power and Light’s SRECDelaware program. The primary buyer for DE SRECs is Delmarva Power and Light (DPL). Most SRECs are sold through DPL’s SRECDelaware program, for which SREC asset owners submit competitive applications in order to obtain 20 year SREC contracts. There continues to be some need for SRECs outside of DPL’s program and compliance buyers with a need for DE sited but non-DPL derived demand will decline over time. SRECTrade administers both the DPL spot auction as well as the software behind the the SRECDelaware solicitations.

Maryland: MD eligible SREC prices saw a slight bump from last month’s SRECTrade auction prices, but MD 2011s did not transact. As SRECs age they tend to become less valuable and opportunities to sell tend to decrease.  MD2012s and MD2013s  transacted at $125.00/SREC and $130.00/SREC in the July auction.

Massachusetts: The July SRECTrade auction saw no SRECs transact because all unsold SRECs have been moved to the DOER Solar Credit Clearinghouse NEPOOL-GIS auction account. The first 2013 SRECs (from Q1 2013 power production) will be minted on July 15th. SRECTrade will hold an auction for those SRECs then. The DOER Solar Credit Clearinghouse auction will run its first iteration on July 26th. For the latest info on the MA market read our MA blog posts.

New Jersey: NJ SREC prices declined again in the July auction for the 2012 and 2013 vintages; a logical trend given the oversupply in the New Jersey market.  NJ2011,  NJ2012, and NJ2013 SRECs traded at $115.25, $115.25, and $120.25/SREC, respectively. Excluding unsold SREC supply carried over from previous vintages, approximately 496.7 MW of annual installed operational capacity  is required to meet the 2013 requirement. As of, 6/30/2013, the NJ Office of Clean Energy reported that 1,094 MW had been installed in NJ.

Ohio: Similar to the June auction no transaction occurred for OH sited SRECs this auction period. OH 2013 adjacent vintage SRECs traded at $12/SREC. 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.

Pennsylvania: PA2012 and 2013 SRECs traded at $8/SREC  and $10/SREC respectively, slightly down from previous auctions. SREC oversupply will continue to result depressed SREC pricing for the foreseeable future. 

Washington, DC: DC SRECs continue to see high transaction values relatively to the $500 SACP. DC 2012 and 2013 vintage SRECs traded at $470.00/SREC. 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 for MA SRECs closes on Monday, July 15th at 5 p.m. ET. A joint, PJM and MA solar auction will be held 8/1/2013. To place an order, login here.

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