Posts Tagged ‘Solar Credit Clearinghouse Auction’

MA 2018 Solar Credit Clearinghouse Auction Result Announcement

Posted July 26th, 2019 by SRECTrade.

On Thursday, July 25th, the Massachusetts Department of Energy Resources (DOER) announced that all of the MA2018 SREC Is and SREC IIs submitted to the auction account were transacted in the first round of the Solar Credit Clearinghouse Auction (SCCA).

A total volume of 9,780 SREC Is were bid on across 21 unique bidders, creating more than sufficient demand to clear the available auction volume of 632 SREC Is.

A total volume of 63,388 SREC IIs were bid on across 21 unique bidders, creating more than sufficient demand to clear the available auction volume of 4,626 SREC IIs.

DOER and EnelX are in the process of certifying and finalizing the auction results. More information will be made available on the SCCA webpage in the coming weeks.

If SRECTrade submitted SRECs to the SCCA on your behalf, we will provide further notice on the status of your transaction once the DOER and EnelX provide us with finalized auction results.

MA DOER Clarifies Purchasing Plan for Massachusetts 2012 SRECs

Posted August 6th, 2013 by SRECTrade.

Last Friday the Massachusetts Department of Energy Resources (DOER) announced that it would purchase any unsold SRECs deposited in the Solar Credit Clearinghouse Auction (SCCA) for $285 per SREC. Unlike the SCCA, this is a voluntary option. Depositors with SRECs in the SCCA will need to notify the DOER that they would like to take advantage of the offer by Wednesday, August 14th (an MA DOER set deadline). Any SRECs not purchased will be returned by the DOER to depositors’ accounts following the August 14 due date. Returned SRECs will be eligible to be transacted for 3 more years (2013, 2014, and 2015), but will not be eligible for any future Solar Credit Clearinghouse Auctions.

SRECTrade has made it easy for clients to sell their eligible SRECs to the DOER by including the DOER’s bid as a feature in their online account. SRECTrade clients with EasyREC accounts will need to log in to their accounts and indicate they would like to sell the applicable SRECs. All SRECs eligible for the DOER’s offer will sell for $285 per SREC, less SRECTrade’s EasyREC fees.

SRECTrade clients will have until Wednesday, August 14th at 9:00 am ET to log in to their SRECTrade account and opt to sell their eligible SRECs. Not all SRECTrade clients with facilities in Massachusetts are eligible for this transaction option. Only clients that had SRECs produced during 2012 and deposited in the SCCA are eligible.

SRECTrade account log in.

For additional information on the SCCA and the DOER’s bid for MA2012 SRECs please read our previous blog posts on the subject.

Massachusetts DOER Offers to Buy All Unsold 2012 SRECs after 3 SRECs sell in the Solar Credit Clearinghouse Auction

Posted August 2nd, 2013 by SRECTrade.

Participants in the Massachusetts  SREC market waited with bated breath today for the third and final round results of the first MA Solar Credit Clearinghouse Auction (SCCA). The SCCA is the hallmark price support mechanism of the Massachusetts SREC market. In over-supplied compliance years, the SCCA is meant to act as a potential last chance for excess SRECs to transact. For more information on the SCCA please see the official DOER page here and previous SRECTrade posts here.

Today, we learned that only 3 out of 38,866 available SRECs were sold. However, the DOER immediately sent an email following the news that they are offering to purchase all remaining 38,863 SRECs for a fixed price of $285 per SREC. The DOER explained its ability to purchase these SRECs on a compliance exemption it provided power suppliers on electricity load already under contract. The adjustment, implemented on June 7, 2013, revised the 2013 compliance requirement upward from 135,495 SRECs to 189,297. The DOER estimates that the incremental compliance obligation exempt from the 2013 adjustment to be approximately 40,000 SRECs.

Effectively the DOER increased the 2013 SREC requirement, but allowed power suppliers the equivalent of a 40,000 SREC exemption from the increase. This exemption is due to the fact that the compliance requirement increase was made retroactively after some power suppliers had already entered into 2013 electricity contracts. Instead of buying the 40,000 exempt SRECs in the open market, the DOER is purchasing SRECs available from the SCCA auction pool. From its email the DOER states that, “World Energy, on behalf of DOER, will directly contact early next week all depositors or their aggregators of this “after-auction” purchase option by DOER, and provide complete instructions on how to opt-in to this opportunity and execute the financial transaction.” Also of note, the DOER is using alternative compliance funds from previous years to cover the cost of purchasing these SRECs. The notice sent to stakeholders did state that that market should not expect the DOER to take this action in any future auction.

 

Update regarding Massachusetts DOER Solar Credit Clearinghouse Auction

Posted December 17th, 2012 by SRECTrade.

Earlier this month SRECTrade hosted a webinar on the Massachusetts SREC market. Since then, there have been a few questions relating to the Massachusetts DOER’s Solar Credit Clearinghouse Auction, informally referred to as the “Last Chance Auction.” Since there is a confirmed oversupply in Massachusetts for 2012, the Solar Credit Clearinghouse Auction will occur in July of 2013 for all unsold SRECs. The auction was designed as a “price support mechanism” for the Massachusetts SREC market, but it does not represent a “price floor,” a common misperception.

The specific dates of the auction are yet to be determined, but here is a rough outline of the timeline:

  • May 15th: Sellers may begin to deposit unsold SRECs int he Auction Account
  • June 15th: Deadline for sellers to deposit their unsold SRECs in the Auction Account (SRECTrade does this automatically for our customers)
  • Late June: Webinars, FAQs, Q&As will all be provided
  • July: Auction is held
  • August: Payments are made sometime in August
  • August 15th: Entire auction process (excluding payment delivery) must be completed by this date in order to commence 2013 SREC market activity

Here are a few key things to know about the auction:

  • All unsold SRECs must be deposited in the Solar Credit Clearinghouse Auction, otherwise they are forfeited by the seller and retired, having no value to the sellers (again, SRECTrade will ensure that every unsold SREC is deposited for our clients)
  • SRECs must be deposited in the auction by the original aggregator/account holder. 3rd party account holders are ineligible from participating in the Solar Credit Clearinghouse Auction
  • If the auction clears, sellers receive $285 per SREC (note: SRECTrade fees are applicable)
  • If the auction does not fully clear, every seller will sell an equal percentage of SRECs. If 50% of the auction clears, each seller will sell 50% of the SRECs deposited
  • SRECs that do not clear in the auction are returned to the seller with 3 additional years of life, so the SREC created in 2012 will have value to a buyer in 2013, 2014 and 2015
  • SRECs that do not clear in the auction are NOT eligible for any future Solar Credit Clearinghouse Auctions
  • If there is an oversupply, Buyers may “bank” up to 10% of their 2012 requirement and use them in 2013 or 2014

Here is the full webinar from December 5th, 2012:

Massachusetts Solar Credit Clearinghouse Auction Explained

Posted July 26th, 2010 by SRECTrade.

MA Energy Year: January 1st – December 31st.

SREC Life: Two years for compliance buyers who may bank up to 10% of their requirement but sellers must sell SRECs in the year they are generated or deposit them in the DOER Auction. So an SREC produced in 2010 can be counted towards the 2010 or 2011 Solar Carve-Out.

When is the last SRECTrade Auction of each Energy Year?

The final SRECTrade auctions will occur in May and June of the following year, immediately before the DOER Solar Credit Clearinghouse last chance auction which closes on June 15th of each year. SRECs are generated quarterly in Massachusetts on a 4-month delay.  SRECs for Q1 (January-March) are available on July 15th and can be sold in auction at the beginning of August. Q2 SRECs are available on October 15th and can be sold in the November auction, Q3 SRECs are available on January 15th and sold in the February auction and Q4 SRECs are available on April 15th and can be sold in the May auction. Any SRECs remaining after the final SRECTrade auction can be entered into the DOER auction.

What happens if at the end of the year I still haven’t sold my SREC(s)?

If you are an SRECTrade client and you have any SRECs that were not sold then SRECTrade will automatically transfer your SRECs to the  DOER Solar Credit Clearinghouse auction.  You do not need to tell SRECTrade to transfer your SRECs if SRECTrade manages your SREC account. SRECs entered into the auction are “Re-Minted” meaning the eligibility of the SREC is adjusted. For example, a 2010 SREC is originally eligible for compliance in 2010 and 2011. If it enters into the DOER auction, the SREC is Re-Minted to be eligible for compliance in 2011 and 2012. It is no longer eligible for compliance in 2010. Buyers may then bid to purchase the SREC to get a start on meeting their requirements for 2011. The DOER auction will be open May 16th to June 15th each year.  SRECs will be sold at a gross fixed price of $300 less a 5% fee resulting in a net price of $285 to any sellers.

Am I guaranteed to sell my SRECs in the DOER Solar Credit Clearinghouse auction?

No, you are not guaranteed to sell your SRECs in the DOER auction. However, it is unlikely that the SRECs don’t sell. If there is an oversupply of SRECs in the DOER auction, the SRECs will all be granted a third year of eligibility and a second auction will be held. So, in our example, the 2010 SREC will now be eligible in 2011, 2012 and 2013. If there still aren’t enough bids to clear all of the SRECs, DOER will increase the requirements to the buyers by the number of SRECs that are available. The buyers bidding in the auction will now be required to purchase more SRECs in 2011. If after this third attempt, there still aren’t enough bids, the SRECs are returned to the owner as Re-Minted SRECs. These SRECs will be more valuable in the open market than any new SRECs that are created. Going back to our example, the original SREC was a 2010 SREC, eligible in 2010 and 2011 before the auction. Once it was entered in the DOER auction, it became eligible in 2011 and 2012. After an unsuccessful DOER auction it was released back to the owner as an SREC eligible in 2011, 2012 and 2013. This SREC now has a 3-year useful life, making it more valuable to a buyer than the new SRECs created in 2011 which only have a 2-year useful life.

If I’m unsuccessful in the DOER auction, how can I be assured that my SREC will still sell above $300?

Following the DOER last chance auction, SRECTrade will resume its monthly competitive auctions. If there was a surplus of SRECs in the DOER auction, they can be immediately listed in the SRECTrade auction the following month and made available to buyers who are now looking to meet their requirements – which have now been increased by the DOER. At this point, buyers will likely resume buying SRECs in the competitive market in order to ensure that they are able to meet their new requirement and avoid the $600 SACP. SREC prices should stay above $300 in the SRECTrade auctions since the DOER auction at the end of the year will guarantee that price.

Why would a buyer of SRECs ever pay more than $300 when they could just wait to buy their SRECs in the Solar Credit Clearinghouse?

Buyers cannot wait for the DOER auction to buy their SRECs for 2010. When an SREC enters the DOER auction, it is stripped of its 2010 eligibility and cannot be used to meet the requirement for the year in which it was generated. The 2010 SRECs placed in the DOER auction can therefore only be used to meet the 2011 or 2012 requirements. Meanwhile, buyers will want to purchase their 2010 SRECs in the competitive market prior to the DOER auction – otherwise they face the $600 fine.