October 2011 SREC Auction Results

Posted October 3rd, 2011 by SRECTrade.

SRECTrade’s October 2011 SREC Auction has completed. Below are the clearing prices at which SRECs traded this month.

October SREC Prices Energy Year Ending
State 2010 2011 2012*
Delaware $90.00
Maryland In-State $200.00
Maryland Out-of-State
Massachusetts
New Jersey $670.00 $670.00 $205.00
Ohio In-State $395.00
Ohio Out-of-State
Pennsylvania $24.99
Washington, DC $61.00 $101.00

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year.
“-” reflects no sale, which would result if there were no matching bids and offers that cleared for a sale in the auction.

State Market Observations:

Delaware: Legislation increasing the SREC requirement went into effect this past June but the market has yet to pick up in response. Stakeholders in DE continue to work to wards a long-term SREC contract solicitation program for new facilities. Meanwhile, the SREC market will likely pick up at the end of the energy year when electricity suppliers are more active.

Maryland: SRECs continue to hover around $200, as the in-state supply of 28.3 MW grows near the ~29 MW of capacity that was required on average throughout 2011. The state seems on a good pace to maintain a balanced supply relative to demand. As 2011 comes to an end, a shortage of SRECs in the state, if any, will be reflected by an increase in prices at the end of the trading period in the first quarter of 2012. Out-of-state SRECs continue to be a non-factor in Maryland.

Massachusetts: The next batch of SRECs will be created on October 17th for Q2 2012 generation. SRECTrade holds special quarterly auctions for Massachusetts SRECs on the day they are created. The next quarterly MA SREC auction closes on Monday October 17th.

New Jersey: Last minute purchasing fueled by the predicted shortage of 2011 SRECs drove pricing up for the few remaining 2011 SRECs in the market. Meanwhile, the 2012 market rebounded to $205 after dropping to $165 last month. As more buyers become active in the 2012 market, prices should continue to correct, though, given the continued influx of supply (now at 430 MW), any price corrections will be limited unless the state takes some action.

Ohio: In-State SRECs continue to be in high demand as prices clear at or near the SACP again. Meanwhile, the demand for out-of-state SRECs has slowed down at this time, likely due to the effects of a significant oversupply in Pennsylvania.

Pennsylvania: HB 1508 was recently introduced to address the state’s SREC market. This marks the beginning of a long process to rescue the PA SREC market. Until then, SRECs will continue to bottom out.

Washington, DC: New legislation closing the DC market borders and increasing requirements is having an impact as prices jumped back up over $100 for the first time this year.

For historical pricing please see this link. As mentioned the Massachusetts quarterly auction order period will close on Monday October 17th. For all other states, the order period for the November auction will close on Monday, October 31, 2011 at 5:00 p.m Eastern. For more information, please visit www.srectrade.com.

One Response to “October 2011 SREC Auction Results”

  1. […] 2012 spot market traded up to $200+/SREC in recent periods with the October auction clearing at $205.┬áThe estimated average installed capacity needed to meet the EY2013 requirements is approximately […]