May 2013 SRECTrade Auction Results

Posted May 22nd, 2013 by SRECTrade.

SRECTrade’s May 2013 SREC Auction closed on 5/01/13. Below are the clearing prices by vintage across the markets covered in the auction.

May SREC Prices SREC Vintage Year
State 2011 2012 2013*
Delaware $35.00
Maryland $115.00
$120.00 $125.00
Massachusetts $200.00
New Jersey $120.00 $135.01 $140.01
Ohio In-State $50.00
Ohio Out-of-State $10.00 $14.00 $14.00
Pennsylvania $10.00 $13.00
Washington, DC $405.00 $420.00

*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: The Delaware market is highly illiquid. 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 SRECs have recently started to submit bids for SRECs. Futhermore, DPL is also currently holding it’s own spot auction for SRECs in order to cover its 2012 energy year position outside of the SRECs that it procured through the SRECDelaware program. The spot auction order window closes on 5/22/2013.  SRECTrade administers both the DPL spot auction as well as the software behind the the SRECDelaware solicitations.

Maryland: MD eligible SREC prices came down from last month’s SRECTrade auction prices. MD2011s, MD2012s, and MD2013s  transacted at $115/SREC, $120/SREC, and $125/SREC, respectively, in the May auction.

Massachusetts: Following on the heels of the 2012 Q4 SREC issuance in April 15, MA2012 SRECs traded at $200/SREC, in line with pricing throughout 2012 vintage trading. MA2012 vintage SRECTrade auction prices have transacted between a low of $181.50/SREC in April 2013 and a high of $271.05/SREC in July 2012. Unsold SRECs should be deposited in the DOER Solar Credit Clearinghouse Auction NEPOOL-GIS account by June 15, 2013. SRECs that are not deposited in the DOER auction will not be eligible for future transactions. SRECTrade expects that approximately 45,000 SRECs will be deposited in the DOER auction.  For more on the MA market read our MA blog posts.

New Jersey: A rush on NJ vintage 2011, 2012, and 2013 SRECs pushed May auction pricing up. NJ2011,  NJ2012, and NJ2013 SRECs traded at $120.00, $135.01, and $140.01/SREC, respectively. The OTC market has experienced pricing increases in line with the auction pricing. This occurred despite NJ Office of Clean Energy announcements that the total installed capacity through 4/30/2013 is estimated to be 1,049 MW, a month over month increase of approximately 22.8 MW. The New Jersey market however, continues to be over-supplied. Not including unsold over-supply carried over from previous vintages, approximately 496.7 MW of annual installed operational capacity  is required to meet the 2013 requirement. As of, 5/15/2013, 995.6 MW were registered in GATS or two times the requirement. GATS registrations tend to lag behind NJ Office of Clean Energy Data by several months because of delays in registering facilities with GATS. NJ SRECs are credited back to date of interconnection.

Ohio: OH2013 Sited SRECs transacted at $50/SREC . OH2011, 2012 and 2013 adjacent vintage SRECs traded at $10, $14 and $14/SREC respectively. As in many auctions throughout the last year  there was no sale of the OH2012 sited 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: PA2012 and 2013 SRECs traded at $10 and $13/SREC respectively, in line with previous auctions. OTC transactions have been pricing slightly higher or in line with auction prints. SREC oversupply continues to impact PA’s market. 

Washington, DC: DC SRECs continue to trade up month over month. The 2012 and 2013 vintages increased to $405 and $420/SREC, respectively. 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 Tuesday, June 4 at 5 p.m. ET and will cover PJM and MA Solar RECs. Click here to sign in and place an order.

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