SRECTrade’s January 2014 SREC Auction closed on 1/15/14. Below are the clearing prices by vintage across the markets sold in the auction.
|SREC Prices||SREC Vintage Year|
Notes: *Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage “2014” SRECs are generated beginning in June of 2013.
– 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
DE SRECs for the June 2013 – May 2014 period transacted at $41.00/SREC. The primary buyer for DE SRECs is Delmarva Power and Light (DPL) and most SRECs are sold through DPL’s SRECDelaware program which allows SREC asset owners to submit competitive applications in order to obtain 20 year SREC contracts. There continues to be limited need for SRECs outside of DPL’s program and demand outside the procurement program is expected to decrease over time.
MD2012s and MD2013s transacted at $130.00 and $140.00/SREC, which was identical to the pricing posted in the December auction. Sellers may expect slightly higher demand over the next month as buyers close out their calendar year 2013 compliance requirements.
2013 vintage SRECs cleared at $250.00 up from the $241.01 auction price posted during the October 2013 Q2 SREC issuance. The $250 auction price is more or less in line with recent brokered spot trades outside of the auction.
NJ2013 and NJ2014 SRECs transacted at $169.00/SREC, a rough increase of 25-30% from the December 2013 auction. Pricing reflects slower than expected build rates in NJ. The current last six month (LSM) average is 11.7 MW, against a last twelve month (LTM) average of 16.9 MW.
OH sited and adjacent SRECs priced at $48/SREC in the January 2014 auction. The market remains over-supplied. Of note, for the first time OH sited SREC pricing fell in line with out-of-state OH SREC pricing likely related to 1) the closing of the 2013 compliance year and 2) an increase in Pennsylvania SREC demand where out-of-state eligible SREC accounts are heavily cross-listed.
PA2012s, PA2013s and PA2014s traded at $40.01, $42.51 and $47.00/SREC respectively – roughly doubling December’s prices. The PA SREC market remains over-supplied, but future RPS increases and fewer lower priced offers available in the market has lead to an increase in price.
DC is an under-supplied market so highly limited volumes of older vintage SRECs are available. No SREC transactions occurred for the DC2011 and DC2012 vintages. DC2013s transacted at $480/SREC, which is 96% of the $500 SACP.
For historical auction pricing please see this link. The next SRECTrade auction for all SREC markets closes on Wednesday, February 5th at 5 p.m. ET.