Archive for the ‘SREC Markets’ Category

The Future of SRECs in Illinois – What Happens after the IL SPV Program?

Posted March 9th, 2016 by SRECTrade.

With the third and final round of the Illinois Supplemental Photovoltaic (SPV) Procurement Program under way, stakeholders are pondering what lies ahead for Solar Renewable Energy Credits (SRECs) in the State of Illinois. The bid for the Spring 2016 SPV Procurement Program (Round 3) will take place on March 31, 2016. The Illinois Commerce Commission (ICC) will issue its final decision on the results of the Procurement on or before April 6, 2016, when we will learn whether the Illinois Power Agency (IPA) spent the entire $15 million allocated for the final round. SRECTrade will publish another blog post with the results of the third round shortly after the ICC releases its decision.

For the Illinois SPV Procurement Program, the State appropriated $30 million of the Renewable Energy Resources Fund (RERF) to procure SRECs from solar photovoltaic (PV) systems energized on or after January 21, 2015. The $30 million budget was divided between the three procurement program rounds, with $5 million allocated for the first round, $10 million allocated for the second round, and $15 million allocated for the third round. The funds appropriated for each of the first two rounds were fully expended by the IPA.

What will happen next for Illinois remains indefinite. If the IPA awards $15 million worth of contracts in the final round, it is uncertain whether there will be a need for a fourth contingency event to take place in Spring 2017. Once the SPV Procurement Program comes to a close, the future of Illinois SRECs will once again destabilize. Although there is potential that solar PV facility owners could participate in other statewide Procurements, there is no long-term certainty for in-state SREC sales, as was made available by the SPV Program. Even more uncertain is whether the Illinois General Assembly will take up any energy bills this year to institute long-term solutions, either before or after the budget for FY2016 is adopted.

SRECTrade encourages PV facility owners in the ComEd utility service territory to apply for the Pennsylvania SREC market. Solar PV facility owners and installers may submit an online application to sell their SRECs in Pennsylvania by creating an SRECTrade account on our home page, and submitting an application for a new facility.

Please feel free to visit our Illinois and Pennsylvania Markets pages for more information on the SREC markets in these states.

If you have any questions about the SPV Program, you can view our introduction webinar and slides online here. You can also email us at clientservices@srectrade.com, or call us at (415) 763-7732 ext 1. SRECTrade is also happy to address inquiries pertaining to our online application and the Pennsylvania SREC Market for Illinois facility owners and installers.

Clean Power Plan: 2016 & Beyond

Posted March 9th, 2016 by SRECTrade.

On February 9th, the U.S. Supreme Court ordered in a 5-4 decision to issue an unprecedented emergency stay on the Environmental Protection Agency’s (EPA) Clean Power Plan (CPP), as states and other stakeholders continue to present legal challenges before lower courts. The Clean Power Plan calls for a 32% reduction of carbon dioxide emissions by 2030 (from a 2005 baseline), requiring states to present their initial compliance plans to the EPA by 2022.

The implementation of the CPP could encourage the states to consider instituting new–or to improve existing–state Renewable Portfolio Standards (RPS) to help meet their goals. Today, only twenty-nine states, Washington, D.C., and two territories have adopted an RPS. Seven of these RPS states have a solar carve out, where a specific percentage of renewable energy requirements must be satisfied with solar energy resources. In addition, eight states and two territories have set some form of renewable energy goals. The CPP’s call to action will mandate all 50 states to develop cost-effective plans to combat climate change, improve air quality and create new jobs.

Twenty-nine states, the U.S. Chamber of Commerce and other entities invested in fossil fuels are challenging the CPP. Many of these CPP opponents argue that the EPA is acting beyond its authority and that, at a minimum, the CPP’s merits must be fully reviewed before imposing federally mandated plans upon the states. CPP opponent Wyoming Governor Matt Mead stated that he is “thrilled” that the EPA’s climate rule was stayed, because the stay may leave the door open for the new administration to evaluate whether there is a “better way to go” than what the CPP would require. However, it is possible that the issue will be brought back to the Supreme Court for a decision before the new president is sworn in on January 20, 2017, leaving time for President Obama to make the Plan law before he leaves the White House.

Litigation in the lower courts is scheduled to begin on June 2, 2016, and a ruling from the Court of Appeals is expected by the end of 2016. Once an appellate decision is made, the case is expected to go back to the Supreme Court. But the sudden passing of Supreme Court Justice Antonin Scalia adds additional uncertainty and complexity to the future of the CPP, as the late Justice Scalia’s successor may very well shape the future of the Clean Power Plan. A new voice on the Court could result in a vote in favor of the CPP, which could swing the 5-4 decision in favor of lowering carbon dioxide emissions and fostering a sustainable change.

Alas, it remains to be seen if President Obama will successfully appoint a new Justice before the end of his term, potentially leaving the appointment to the next President. And if a new Justice is not appointed before the Court revisits the CPP, there is a chance we could see 4-4 decision from the Court on the issue, which would mean that the Court of Appeal’s ruling would be automatically upheld. As D.C. plays tug-of-war over the Supreme Court vacancy, CPP opponents are working to convince the lower courts that the CPP would spell economic disaster for the nation, while CPP’s proponents assert that the Plan would guide our nation away from coal-fired electricity and forestall millions of metric tons of greenhouse-gas emissions.

The Obama Administration vowed to press forward with the President’s climate policy. If approved, the Clean Power Plan would set a historic precedent on how environmental laws are structured and serve as an example for national and global policies. The CPP was instrumental in influencing heavily polluting nations such as China and India to sign the Paris Agreement at the 2015 United Nations Climate Change Conference.  The Paris Agreement aims to prevent, mitigate and respond to climate change. If the Clean Power Plan is ultimately struck down, the decision would challenge the implementation of national and worldwide environmental policies. Evermore, the selection of our next President and Supreme Court Justice will greatly influence the future of clean energy and shape how environmental issues are prioritized and responded to in the years to come.

Maryland SREC Update: March 2016

Posted March 1st, 2016 by SRECTrade.

Recent public discussion of Maryland’s proposed increase to the state’s RPS requirements, as well as the introduction of the Clean Energy Jobs Act to the Maryland general assembly, has brought widespread attention to the status of Maryland’s environmental commodity markets.  Due to this focus we updated our capacity models for Maryland to account for the latest generation data available in GATS.

Our updated MD capacity presentation can be found here.

Through December 2015 (the last reliable month of data due to reporting lag) there was approximately 113,240 SRECs left over from compliance years 2013, 2014 and 2015.  This assumes that the 349,917 available 2015 SRECs are put towards the CY15 compliance requirement of 308,419.  Assuming that the observed average monthly build rate of 10.9 MW/month continues to hold, we project that 534,776 additional SRECs will be generated in compliance year 2016.  Taking together the existing inventory of available prior-year SRECs together with the projected 2016 production, we foresee an oversupply of 216,229 SRECs  by the end of 2016.

As we look into future years, the degree of oversupply begins to vary widely depending on the assumptions made regarding monthly build rates.  In 2017 we see a range of market conditions between a 42% and 82% oversupply, and in 2018 conditions between a 15% and 77% oversupply.  These projections do not take into account the RPS increases currently under legislative review in the Maryland general assembly, as covered in our recent post from February 10th.

We will continue to monitor the state of the Maryland market as more data continues to be made available regarding reported build rates through early 2016.  Please reach out to the SRECTrade team with any questions or feedback.

Massachusetts Net-metering & SREC Policy discussion with UBS Analyst, Julien Dumoulin-Smith

Posted March 1st, 2016 by SRECTrade.

On Friday, February 26, 2016 UBS Analyst Julien Dumoulin-Smith hosted Allyson Browne and Alex Sheets for a discussion on the current state of affairs in Massachusetts regarding solar policy. The slides are available here. The recording is below:

 

UPDATE: UBS published a transcript of the call.

MA SREC-II Update Webinar

Posted March 1st, 2016 by SRECTrade.

SRECTrade will be hosting a webinar this Thursday, March 3rd, at 1:00PM EST. The webinar will cover the current state of the Massachusetts SREC-II program, guidelines for qualifying systems under SREC-II, and general market information.

To attend the webinar click HERE to register. A recording will be made available on our blog for those unable to attend.

Please note, we are currently accepting SREC-II online applications on SRECTrade.com and will continue submitting them to the Massachusetts Department of Energy Resources (DOER) in the order they are received. SRECTrade encourages you to submit complete applications for your system as soon as possible, for the best chance of getting enrolled in the remaining SREC-II capacity. Applications submitted to SRECTrade are not guaranteed to be qualified under the SREC-II program due to the rapidly diminishing capacity remaining in the program.

New Jersey SREC Registration Program (SRP) Transition Update

Posted February 23rd, 2016 by SRECTrade.

The New Jersey Office of Clean Energy announced that, effective March 1st, 2016, all solar renewable energy credit (SREC) registration program (SRP) applications will be submitted through an online portal. This portal is anticipated to expedite the review and approval of SRP registrations and reduce the backlog that the state works with. Registrants will have opportunities to submit project specifications as well as upload supporting documentation through the portal. Although paper applications will no longer be accepted, this development will help to streamline the application process for the nation’s largest SREC market.

Office of Clean Energy representatives hosted training sessions for the online portal on February 18th and 19th. The webinars were made publicly available on the Office’s webpage and a user manual with frequently asked questions will also be developed.

The Office encourages registrants who have previously submitted a paper application to withdraw their application and re-submit it to the online portal on or after March 1st, thus expediting the application review. For applicants that choose to re-submit their registrations in the online portal, the registration date of their original submissions will be used to determine compliance with state rules.

The Office also announced that from this time forward all SRP Registration packets and Final As-built documentation should be submitted to the new address below:

New Jersey’s Clean Energy Program, SRP Processing Team, c/o Applied Energy Group
317 George Street, Suite 305
New Brunswick, NJ 08901

The Office’s phone number for inquiries, 866-NJSMART (657-6278), remains unchanged.

SRECTrade, Inc. continues to enjoy great success transacting in the New Jersey SREC market as prices have steadily risen over the last four months. For more information on the New Jersey SREC market, please visit our state webpage here.

Ohio Revisits RPS for Post-freeze Plans

Posted February 21st, 2016 by SRECTrade.

In June 2014, Ohio Governor John Kasich signed a bill that froze Ohio’s Renewable Portfolio Standard (RPS) for two years. With the freeze lifting after 2016, Gov. Kasich called upon Ohio’s Energy Mandates Study Committee in 2015 to provide guidance on how to proceed with the state’s RPS. The 12-member legislative committee released its report in September 2015, recommending that the RPS be frozen indefinitely. Now, despite having signed the bill freezing the RPS in 2014, Gov. Kasich has taken the stance that gutting the state’s renewable mandates would be “unacceptable“, positioning himself for a fight with his General Assembly on the state’s clean energy goals.

Enacted in 2008, the Ohio Renewable Portfolio Standard establishes annual benchmarks for renewable energy procurement. The RPS sets the percent of electricity that must be generated from renewable energy resources by 2027. Within the overall RPS, a percentage must be fulfilled with solar resources. This solar carve-out establishes how many SRECs must be purchased by electricity suppliers. The overall RPS and solar carve-out were originally structured to increase annually between 2009 and 2024, but were frozen at 2014 levels through 2016. The RPS is currently frozen at 2.5%, with the solar carve-out at 0.12%. In the 2014 bill, the RPS schedule was revised to resume with a two year delay after the freeze, but it is possible that Gov. Kasich and Ohio’s General Assembly will now move the RPS in another direction.

SB310, the bill enacting the freeze, also removed the in-state RPS requirement and adjusted the Solar Alternative Compliance Payment (SACP) schedule. The freeze and concurrent changes made to the RPS resulted in devaluing OH-eligible SRECs, harming those who invested in solar in reliance on the state’s commitment to clean energy. Since the bill passed in mid-2014, the value of OH SRECs has dropped from $45 to as low as $15.

While Gov. Kasich claims that the original Renewable Energy Portfolio Standard is “unpalatable“, he has vowed that he would return the program back to its original state if the General Assembly refuses to unfreeze the program. But Ohio’s mixed record on renewable energy and the recent developments on the Clean Power Plan make the future of the RPS uncertain. For now, Ohio joins many other states in the tug-of-war battle over renewable energy policies, making 2016 an important year in shaping the states’–and country’s–clean energy future.

 

Massachusetts SREC-II Solar Capacity Update: February 18, 2016

Posted February 18th, 2016 by SRECTrade.

On Thursday, February 18th, the Massachusetts Department of Energy Resources (DOER) provided an update to the list of SREC-II Qualified Generation Units. Notably, the DOER announced that 67.3 Megawatts (MW) of capacity remains available under the SREC-II program for systems equal to or less than 25 kW DC. The DOER has provided information on its Statement of Qualification Application webpage that clarifies the procedure and required documentation for systems equal to or less than 25 kW to obtain an Assurance of Qualification (AQ).

The DOER continues to sort through the applications for projects larger than 25 kW. As previously announced, on February 5, 2016, the SREC-II program reached its cap for projects greater than 25 kW. As of this update, all incomplete applications have been marked as “Returned” in the online Statement of Qualification Application. The DOER has stated that applications that have been returned have to be completed by Thursday, February 25th, to resubmit a complete application to the DOER. SRECTrade is reviewing all returned applications accordingly and will request missing information from our applicants. We will contact you directly regarding the timing of completion. All missing documentation will need to be prepared and submitted as soon as possible in advance of the DOER deadline.

All applications that are still found by the DOER to be incomplete or that are submitted after the deadline will be rejected, and applicants will be required to reapply with a new application. The DOER will provide a status update to all applicants after completing its review of applications that are resubmitted through this process.

SRECTrade will continue to monitor the current status of the program and provide updates on applications as they become available.

A summary of the current status report can be found below:

Screenshot_021816_055210_PM

Illinois Supplemental PV Procurement Program – Application for March Solicitation – Update

Posted February 16th, 2016 by SRECTrade.

SRECTrade has extended the deadline to submit applications for Round 3 of the Illinois Supplemental PV Procurement Program.

The new application deadline is Friday, March 4th, 2016 at 5 pm CST.

All application materials must be received by this date. Incomplete applications, or applications submitted after this deadline, will not be eligible for the Round 3 Bid. To submit an application, please login or create an account on SRECTrade.com. Even though the application deadline has been extended, we encourage applicants to submit their applications as soon as possible so that materials can be reviewed for completeness and accuracy in advance of the March 4th deadline.

If you have any questions about the program or the application, you can view our introduction webinar and slides online here. You can also contact us at clientservices@srectrade.com, or call us at (877) 466-4606.

Clean Energy Jobs Act Introduced to Maryland’s General Assembly

Posted February 10th, 2016 by SRECTrade.

Since its introduction to the public on December 8th, 2015, the Maryland Clean Energy Jobs Act has made its way to the front doors of the Maryland General Assembly, with the recent introduction of the bill into the Senate under SB0921 and the upcoming introduction into the House of Delegates this coming Friday, February 12th. The Act proposes an increase to the state’s existing Renewable Portfolio Standard (RPS), which would include slight increases to the solar carve-out. The Act schedules a gradual increase in the state’s RPS obligation to satisfy 25 percent of its energy needs with Tier 1 renewable energy sources by 2020 – a significant advancement of the current goal of 20 percent by 2020. The solar carve-out is scheduled to increase incrementally from the current goal of 2.0 percent by 2020 to 2.5 percent by 2025.

Senator Majority Leader Catherine Pugh (D-Baltimore), Delegate Dereck Davis (D-Prince George’s), Senator Brian Feldman (D-Montgomery), and Delegate Bill Frick (D-Montgomery) have championed the concept of the bill since its inception months ago. The bill was first filed in the Senate by Senator Pugh, and was referred to the Finance Committee in its First Reading on February 5th. The bill’s introduction to the House will be this Friday, which will just beat the state’s House Bill Introduction Date, allowing the bill to bypass referral to the House Rules and Executive Nominations Committee.

While we monitor the progress of this bill on the House and Senate floors, we are continuing to project and analyze the impact that its passage could have on the Maryland solar renewable energy credit (SREC) market. Increasing the annual RPS obligation schedule will also increase the demand for SRECs and support prices in the market. In addition, the Act is anticipated to source $40 million from unallocated contributions from the state’s Strategic Energy Investment Fund, create an estimated 2,000 additional clean energy jobs, and help Maryland address climate change with clean energy.

For more information on the early stages of the Clean Energy Jobs Act, please reference our previous post on the topic from December 11th, 2015.