Yesterday, May 8, 2014, the Ohio State Senate passed SB 310. The legislation calls for a temporary freeze of the Ohio Renewable Portfolio Standard (RPS) at current levels through 2016. The legislation must also pass the Ohio State House and be signed by the Governor before becoming law. Please see the proposed amendment to the percentage of renewable in the image below.
The Ohio RPS defines the amount of SRECs required each year in Ohio. The number of OH certified SRECs increases annually according to a schedule defined by the RPS. If the RPS is frozen at current levels, the number of SRECs required will remain at approximately 194,178 SRECs per year (through 2016), rather than increasing next year to approximately 246,363 SRECs*. The legislation also calls for removal of the requirement that at least 50% of the state’s renewable energy requirement be met by facilities physically-sited in Ohio. Instead, the RPS would be amended to allow the entire requirement to met by facilities located in Ohio and neighboring states.
The outcome of these two changes in policy would likely lower the value of SRECs generated in Ohio. Further, the policy precedent that this legislation sets might increase the cost of financing renewable energy projects, an outcome that is counter to the assumed justification (the supposed high cost of renewable energy) for freezing the RPS at current levels.
If you are an Ohio resident we recommend contacting your state representative immediately. Let them know that you don’t support the move to reduce the Ohio RPS. Click below for the contact information for all members of the Ohio House of Representatives.
*SREC estimates are based on the Energy Information Administration (EIA) annual OH electricity usage in MW-hrs as of 10/1/2012. The 2014 OH RPS requires .12% of all electricity to come from solar. SRECs reflect one (1) MW-hr of solar power production.
Note: Ohio-sited facilities, sited in PJM territory, are eligible to cross register in the Pennsylvania SREC market. Like the Ohio SREC market, the Pennsylvania SREC market is oversupplied, but it does provide another option for monetizing SRECs. SRECTrade clients with OH-sited facilities may request PA certification through the facility “Settings” page in their SRECTrade.com accounts.
Source: Ohio State Legislature website
Tags: SB 310