Posts Tagged ‘SRECs’

SRECTrade SREC Markets Report: April 2013

Posted May 22nd, 2013 by SRECTrade.

SRECTrade SREC Markets Report: April 2013

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade currently serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.

A PDF copy of this table can be found here.

 Capacity_April2013

Overview of PJM Eligible Systems

As of May 15, 2013 there were 34,339 solar PV and 696 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 228 (0.65%) have a nameplate capacity of 1 megawatt or greater. Twenty-five of these projects have a nameplate capacity of 5 MW or greater. New Jersey continues to host most of the larger scale facilities, claiming home to 60.0% of the projects, 15 of 25 facilities, that are equal to or greater than 5 MW. The three largest projects are a 29.1 MW FirstSolar project in MD, the 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.

Massachusetts DOER Qualified Projects

As of May 20, 2013, there were 5,992 MA DOER qualified solar projects; 5,897 operational and 95 not operational. Total qualified capacity is 287.0 MW, 217.9 MW of which is operational and 69.1.9 MW not operational. The not operational capacity balance increased by 37.2 MW over the last reporting period. Electricity suppliers providing power to the state need to acquire approximately 73,400 SRECs in 2012. According to NEPOOL GIS, 118,356 MA2012 SRECs have been issued for the current compliance year.

How to Interpret This Table

The tables above demonstrate the capacity breakout by state. Note, that for all PJM GATS registered projects, each state includes all projects certified to sell into that state. State RPS programs that allow for systems sited in other states to participate have been broken up by systems sited in-state and out-of-state. Additional detail has been provided to demonstrate the total capacity of systems only certified for one specific state market versus being certified for multiple state markets. For example, PA includes projects only certified to sell into the PA SREC market, broken out by in-state and out-of-state systems, as well as projects that are also certified to sell into PA and Other State markets broken out by in state and out of state systems (i.e. OH, DC, MD, DE, NJ). PA Out-of-State includes systems sited in states with their own state SREC market (i.e. DE) as well as systems sited in states that have no SREC market (i.e. VA). Also, it is important to note that the Current Capacity represents the total megawatts eligible to produce and sell SRECs as of the noted date, while the Estimated Required Capacity – Current and Next Reporting Year represents the estimated number of MW that need to be online on average throughout the reporting period to meet the RPS requirement within each state with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. Additionally, the data presented above does not include projects that are in the pipeline or currently going through the registration process in each state program. This data represents specifically the projects that have been approved for the corresponding state SREC markets as of the dates noted.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” updated 10/1/12. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.5% growth rate per forecast year. The state’s RPS Solar requirement is then multiplied by forecast total electricity sales to arrive at projected SRECs required. Projected capacity required is based on a factor of 1,200 MWh in PJM states and 1,130 MWh in MA, generated per MW of installed capacity per year.

 

May 2013 SRECTrade Auction Results

Posted May 22nd, 2013 by SRECTrade.

SRECTrade’s May 2013 SREC Auction closed on 5/01/13. Below are the clearing prices by vintage across the markets covered in the auction.

May SREC Prices SREC Vintage Year
State 2011 2012 2013*
Delaware $35.00
Maryland $115.00
$120.00 $125.00
Massachusetts $200.00
New Jersey $120.00 $135.01 $140.01
Ohio In-State $50.00
Ohio Out-of-State $10.00 $14.00 $14.00
Pennsylvania $10.00 $13.00
Washington, DC $405.00 $420.00

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage SRECs are generated beginning in June of 2012.
Green text represents a price increase over the last auction clearing price for that vintage, red text represents a decrease.
“-” 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:

Delaware: The Delaware market is highly illiquid. The primary buyer for DE SRECs is Delmarva Power and Light (DPL). Most SRECs are sold through DPL’s SRECDelaware program, for which SREC asset owners submit competitive applications in order to obtain 20 year SREC contracts. There continues to be some need for SRECs outside of DPL’s program and compliance buyers with a need for DE sited SRECs have recently started to submit bids for SRECs. Futhermore, DPL is also currently holding it’s own spot auction for SRECs in order to cover its 2012 energy year position outside of the SRECs that it procured through the SRECDelaware program. The spot auction order window closes on 5/22/2013.  SRECTrade administers both the DPL spot auction as well as the software behind the the SRECDelaware solicitations.

Maryland: MD eligible SREC prices came down from last month’s SRECTrade auction prices. MD2011s, MD2012s, and MD2013s  transacted at $115/SREC, $120/SREC, and $125/SREC, respectively, in the May auction.

Massachusetts: Following on the heels of the 2012 Q4 SREC issuance in April 15, MA2012 SRECs traded at $200/SREC, in line with pricing throughout 2012 vintage trading. MA2012 vintage SRECTrade auction prices have transacted between a low of $181.50/SREC in April 2013 and a high of $271.05/SREC in July 2012. Unsold SRECs should be deposited in the DOER Solar Credit Clearinghouse Auction NEPOOL-GIS account by June 15, 2013. SRECs that are not deposited in the DOER auction will not be eligible for future transactions. SRECTrade expects that approximately 45,000 SRECs will be deposited in the DOER auction.  For more on the MA market read our MA blog posts.

New Jersey: A rush on NJ vintage 2011, 2012, and 2013 SRECs pushed May auction pricing up. NJ2011,  NJ2012, and NJ2013 SRECs traded at $120.00, $135.01, and $140.01/SREC, respectively. The OTC market has experienced pricing increases in line with the auction pricing. This occurred despite NJ Office of Clean Energy announcements that the total installed capacity through 4/30/2013 is estimated to be 1,049 MW, a month over month increase of approximately 22.8 MW. The New Jersey market however, continues to be over-supplied. Not including unsold over-supply carried over from previous vintages, approximately 496.7 MW of annual installed operational capacity  is required to meet the 2013 requirement. As of, 5/15/2013, 995.6 MW were registered in GATS or two times the requirement. GATS registrations tend to lag behind NJ Office of Clean Energy Data by several months because of delays in registering facilities with GATS. NJ SRECs are credited back to date of interconnection.

Ohio: OH2013 Sited SRECs transacted at $50/SREC . OH2011, 2012 and 2013 adjacent vintage SRECs traded at $10, $14 and $14/SREC respectively. As in many auctions throughout the last year  there was no sale of the OH2012 sited vintages indicating the lack of demand and oversupply in the market. 2013 is expected to continue to experience oversupply and minimal demand. Most demand for OH Sited SRECs has been fulfilled through long term agreements with large utility scale projects or through long term RFPs with the state’s regulated utilities. 2012 compliance obligations are currently being finalized.

Pennsylvania: PA2012 and 2013 SRECs traded at $10 and $13/SREC respectively, in line with previous auctions. OTC transactions have been pricing slightly higher or in line with auction prints. SREC oversupply continues to impact PA’s market. 

Washington, DC: DC SRECs continue to trade up month over month. The 2012 and 2013 vintages increased to $405 and $420/SREC, respectively. It is expected the market will continue to experience under supply into the 2013 trading year.

For historical auction pricing please see this link. The next SRECTrade auction closes on Tuesday, June 4 at 5 p.m. ET and will cover PJM and MA Solar RECs. Click here to sign in and place an order.

SRECTrade SREC Markets Report: March 2013

Posted April 10th, 2013 by SRECTrade.

SRECTrade SREC Markets Report: March 2013

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade currently serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.

A more detailed analysis of supply, demand and price trends in the SREC markets can be found in the SREC Market Monitor, a joint-venture between SRECTrade and Greentech Media’s GTM Research.

A PDF copy of this table can be found here.

Capacity_March2013

***NJ Capacity Update as of 3/31/13*** Through March 2013 NJ installed capacity reached approximately 1,026 MW of installed solar capacity; a 18 MW increase over the prior month. The number in the table above represents all capacity registered in GATS as of the date noted. The remaining capacity will be registered and receive SREC credit from the date of project interconnection.

Overview of PJM Eligible Systems

As of April 9, 2013 there were 33,116 solar PV and 679 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 225 (0.67%) have a nameplate capacity of 1 megawatt or greater. Twenty-four of these projects have a nameplate capacity of 5 MW or greater. New Jersey continues to host most of the larger scale facilities, claiming home to 62.5% of the projects, 15 of 24 facilities, that are equal to or greater than 5 MW. The three largest projects are a 29.1 MW FirstSolar project in MD, the 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.

Massachusetts DOER Qualified Projects

As of April 17, 2013, there were 5,532 MA DOER qualified solar projects; 5,485 operational and 47 not operational. Total qualified capacity is 239.1 MW, 207.2 MW of which is operational and 31.9 MW not operational. Electricity suppliers providing power to the state need to acquire approximately 73,400 SRECs in 2012. According to NEPOOL GIS, 119,247 MA2012 SRECs have been issued for the current compliance year.

How to Interpret This Table

The tables above demonstrate the capacity breakout by state. Note, that for all PJM GATS registered projects, each state includes all projects certified to sell into that state. State RPS programs that allow for systems sited in other states to participate have been broken up by systems sited in-state and out-of-state. Additional detail has been provided to demonstrate the total capacity of systems only certified for one specific state market versus being certified for multiple state markets. For example, PA includes projects only certified to sell into the PA SREC market, broken out by in-state and out-of-state systems, as well as projects that are also certified to sell into PA and Other State markets broken out by in state and out of state systems (i.e. OH, DC, MD, DE, NJ). PA Out-of-State includes systems sited in states with their own state SREC market (i.e. DE) as well as systems sited in states that have no SREC market (i.e. VA). Also, it is important to note that the Current Capacity represents the total megawatts eligible to produce and sell SRECs as of the noted date, while the Estimated Required Capacity – Current and Next Reporting Year represents the estimated number of MW that need to be online on average throughout the reporting period to meet the RPS requirement within each state with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. Additionally, the data presented above does not include projects that are in the pipeline or currently going through the registration process in each state program. This data represents specifically the projects that have been approved for the corresponding state SREC markets as of the dates noted.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” updated 10/1/12. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.5% growth rate per forecast year. The state’s RPS Solar requirement is then multiplied by forecast total electricity sales to arrive at projected SRECs required. Projected capacity required is based on a factor of 1,200 MWh in PJM states and 1,130 MWh in MA, generated per MW of installed capacity per year.

 

 

March 2013 SREC Auction Results

Posted March 12th, 2013 by SRECTrade.

SRECTrade’s March 2013 SREC Auction closed on 2/28/13. Below are the clearing prices by vintage across the markets covered in the auction.

March SREC Prices SREC Vintage Year
State 2011 2012 2013*
Delaware
Maryland $135.00 $128.00
Massachusetts $220.00
New Jersey $100.00 $105.56 $112.00
Ohio In-State $40.00
Ohio Out-of-State $5.99
Pennsylvania $10.00
Washington, DC $386.12 $381.12

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage SRECs are generated beginning in June of 2012.
Green text represents a price increase over the last auction clearing price for that vintage, red text represents a decrease.
“-” 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.

For detailed analysis of SREC market prices and trends please subscribe to the SREC Market Monitor, a joint publication of Greentech Media’s GTM Research and SRECTrade.

State Market Observations:

Delaware: No DE SRECs transacted in the March auction. Most demand for DE SRECs will be through the DE SEU SREC Procurement Program solicitations. For the latest information on the upcoming 2013 solicitation click here: 2013 DE Program Announcement.

Maryland: MD2012 and MD2013 SRECs transacted at $135/SREC and $128/SREC, respectively, in the March auction. While MD12s in the over the counter (OTC) market transacted higher in the middle of the month, demand subsided at the end of the month. Compliance obligations for 2012 are currently being finalized.

Massachusetts: MA2012 SRECs traded at $220/SREC. OTC transactions have trended at the same levels between $220 and $230/SREC. SREC issuance volumes in Q1-Q3 2012 and October – December 2012 MWhs reported to the MA CEC demonstrate that 2012’s requirements have been met. The next SREC issuance for Q4 2012 generation will fall on April 15, 2013. The 2012 market will be oversupplied by approximately 50% of this year’s compliance obligation. On 2/27/13, the DOER announced proposed rule changes.

New Jersey: NJ2012 and NJ2013 SRECs traded up to $105.56 and $112/SREC, respectively. The NJ Office of Clean Energy announced total installed capacity through January 2013 was estimated to be 973.4 MW, a monthly increase of approximately 17.4 MW. Over the past few days OTC transactions have trended down to come inline with the March auction pricing. New Jersey’s regulated utilities will be hosting an auction for upwards of 60,000 NJ2013 SRECs on March 19. This auction will decrease demand and may result in continued downward pressure on SREC pricing.

Ohio: OH2013 Sited SRECs transacted at $40/SREC and OH2013 Adjacent SRECs traded at $5.99/SREC. There was no sale of the 2012 vintages indicating the lack of demand and oversupply in the market. 2013 is expected to continue to experience oversupply and minimal demand. Most demand for OH Sited SRECs has been fulfilled through long term agreements with large utility scale projects or through long term RFPs with the state’s regulated utilities. 2012 compliance obligations are currently being finalized.

Pennsylvania: PA2013 SRECs traded at $10/SREC, in line with the February 2013 auction. OTC transactions have been pricing slightly higher. SREC oversupply continues to impact PA’s market. 

Washington, DC: The 2010 and 2012 vintages increased to $355 and $386.12/SREC, respectively. Additionally, DC2013 SRECs traded at $381.12. Compliance entities are currently finalizing obligations for 2012. It is expected the market will continue to experience under supply into the 2013 trading year.

For historical auction pricing please see this link. The next SRECTrade auction closes on Monday, April 1 at 5 p.m. ET and will cover PJM Solar RECs. The next MA Solar REC auction will close on Monday, April 15 after the Q4 2012 NEPOOL GIS issuance. Click here to sign in and place an order.

SRECTrade SREC Markets Report – February 2013

Posted March 12th, 2013 by SRECTrade.

SRECTrade SREC Markets Report: February 2013

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade currently serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.

A more detailed analysis of supply, demand and price trends in the SREC markets can be found in the SREC Market Monitor, a joint-venture between SRECTrade and Greentech Media’s GTM Research.

A PDF copy of this table can be found here.

Capacity_February2013

***NJ Update: Installed Capacity Surpasses 1 GW of Solar*** Through February 2013 NJ installed capacity reached approximately 1,008.4 MW of installed solar capacity; a 35 MW increase over the prior month. The number in the table above represents all capacity registered in GATS as of the date noted. The remaining capacity will be registered and receive SREC credit from the date of project interconnection.

Overview of PJM Eligible Systems

As of March 11, 2013 there were 31,932 solar PV and 663 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 213 (0.65%) have a nameplate capacity of 1 megawatt or greater. Twenty three of these projects have a nameplate capacity of 5 MW or greater. New Jersey continues to host most of the larger scale facilities, claiming home to 65.2% of the projects, 15 of 23 facilities, that are equal to or greater than 5 MW. The three largest projects are a 29.1 MW FirstSolar project in MD, the 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.

Massachusetts DOER Qualified Projects

As of March 13, 2013, there were 4,962 MA DOER qualified solar projects; 4,945 operational and 17 not operational. Total qualified capacity is 214.6 MW, 195.4 MW of which is operational and 19.2 MW not operational. Electricity suppliers providing power to the state need to acquire approximately 73,400 SRECs in 2012. According to NEPOOL GIS, 91,684 Q1 – Q3 2012 SRECs have been issued for the year to date. Additionally, 25,750 MWhs were reported to the MassCEC production tracking system for the 3 months covering October-December 2012.

How to Interpret This Table

The tables above demonstrate the capacity breakout by state. Note, that for all PJM GATS registered projects, each state includes all projects certified to sell into that state. State RPS programs that allow for systems sited in other states to participate have been broken up by systems sited in-state and out-of-state. Additional detail has been provided to demonstrate the total capacity of systems only certified for one specific state market versus being certified for multiple state markets. For example, PA includes projects only certified to sell into the PA SREC market, broken out by in-state and out-of-state systems, as well as projects that are also certified to sell into PA and Other State markets broken out by in state and out of state systems (i.e. OH, DC, MD, DE, NJ). PA Out-of-State includes systems sited in states with their own state SREC market (i.e. DE) as well as systems sited in states that have no SREC market (i.e. VA). Also, it is important to note that the Current Capacity represents the total megawatts eligible to produce and sell SRECs as of the noted date, while the Estimated Required Capacity – Current and Next Reporting Year represents the estimated number of MW that need to be online on average throughout the reporting period to meet the RPS requirement within each state with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. Additionally, the data presented above does not include projects that are in the pipeline or currently going through the registration process in each state program. This data represents specifically the projects that have been approved for the corresponding state SREC markets as of the dates noted.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” updated 10/1/12. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.5% growth rate per forecast year. The state’s RPS Solar requirement is then multiplied by forecast total electricity sales to arrive at projected SRECs required. Projected capacity required is based on a factor of 1,200 MWh in PJM states and 1,130 MWh in MA, generated per MW of installed capacity per year.

Webinar: Update for New Jersey Clients and Installer Partners

Posted February 22nd, 2013 by SRECTrade.

Last week our brokerage team ran a webinar covering the New Jersey SREC market. The webinar recording is available here. The webinar covered a relatively high level analysis of the New Jersey SREC market and was geared towards large commercial and institutional level clients.

We will present another webinar on Wednesday, 2/27/2013 at 3:30 pm EST designed for a general audience of existing and potential clients and installer partners. The webinar outlines some of the basic requirements for participating in the New Jersey SREC market, SRECTrade best practices and options for SRECTrade clients to sell their SRECs.

Register for the webinar here: https://srectrade.clickwebinar.com/New_Jersey_Client_Update/register

As always, the webinar will be recorded and posted online if you can’t attend the actual webinar.

Topics we will cover include:

  • Recent changes to the New Jersey SREC market including legislation adjusting the New Jersey RPS and new meter requirements
  • Why SRECs are currently pricing in the low $100s and why SREC prices are unlikely to significantly increase in value for the 2013 energy year
  • Why it makes sense to utilize the SRECTrade “Managed Sales” option
  • SREC aggregation management options

 

Community Net Metering in DC?

Posted February 22nd, 2013 by SRECTrade.

Flag_map_of_Washington_DCOn January 8, 2013 B20-0057 , the “Community Renewable Energy Act of 2013” was introduced. The bill has 8 sponsors (Alexander, Barry, Bonds, Cheh, Graham, Grosso, McDuffie, and Wells), a majority of the 13-member DC Council. The “Community Renewable Energy Act of 2013” proposes to amend the “Retail Electric Competition and Consumer Protection Act of 1999” (which created net metering in Washington, DC) to allow rate payers  in DC to “subscribe” to electricity from solar power produced from registered “Community Energy Generating Facilities.” If passed, this bill would open up the solar electricity market in DC to the entire rate payer base (including renters and condo owners) and not just property owners.  Theoretically, legislation of this nature would also lower the investment risk of going solar in the District for “subscribers” and project developers by diversifying the required type and commitment of investors able to participate.

The bill must next progress to committee before it can be voted on by the general council. SRECTrade will track the progress of the legislation and provide updates as applicable. View the proposed bill here.

Some interesting clauses to note in the proposed bill:

– “Community Energy Generating Facilities” cannot be larger than 5 MW in capacity

– There can be as few as 2 subscribers to the power produced from eligible facilities

– Subscriptions cannot be for more than 120% of the subscriber’s 12 month electricity usage

– Subscriber accounts can only be adjusted once a month

– Utilities (Pepco) may be able to require all subscribers to be on the same billing cycle

– The owner(s) of the Community Energy Generating Facility owns the rights to SRECs produced from the power

– Power production will be tracked by a production meter installed by the Community Energy Generating Facility owner

– In months where subscribers receive credit for more power than they consume the excess power will be credited towards the next month’s electric bill

– Excess power credits at the end of the annual cycle (ends in April of each year) will be lost and reallocated to rate payers eligible for the District’s Low Income Housing Energy Assistance Program (LIHEAP)

– Requires adoption of the Interstate Renewable Energy Council (IREC) interconnection standards within 6 months of the bill’s passage.

– Most interestingly, the proposed bill requires that the District Department of Energy and the District Sustainable Energy Utility to develop a proposal within 6 months of the bill’s passage for an equitable and creative program for financing community net metering projects.

Massachusetts Solar Carve-Out Rulemaking and Policy Development Update

Posted February 22nd, 2013 by SRECTrade.

The Massachusetts Department of Energy Resources (DOER) sent an email update today (2/22/2013) with clarifications on how the DOER intends to address the approach of the 400 MW cap to the existing Solar Carve-Out program as well as a timeline for establishing a solar policy beyond the existing 400 MW Solar Carve-Out.  Read the bulletin here. Currently the Massachusetts Solar Carve-Out program is limited to 400 MW of installed eligible solar capacity.

Highlights of the bulletin are:

Plans for the approach of the 400th MW

– DOER to submit a Public Notice on March 1, 2013 outlining a queuing system for SREC eligible projects as the Solar Carve-Out approaches the 400 MW cap

– Following public comment the DOER intends to firmly establish any queuing system for SREC eligible projects before the DOER Solar Credit Clearinghouse Auction in June

Plans for a solar program after the 400th MW

– DOER to present a post 400 MW policy proposal at a stakeholder meeting in March 2013 (date to be announced)

– A finalized post-400 MW policy will be adopted in April or May

SRECTrade will closely follow the development of these two DOER initiatives. Stay tuned to our blog for details as they emerge.

* Update, 2/27/2013: The DOER sent a follow up email today with a link to the proposed amendment for Solar Carve Out program. A public hearing will be held on March 22, 2013 at the Massachusetts State House in Boston in the Gardner Auditorium. The public comment period for written comments will run from March 1, 2013 to March, 25, 2013.

The Q4 2012 SREC Market Monitor is Available! Learn actionable detail on the SREC Markets

Posted February 21st, 2013 by SRECTrade.

SREC Market MonitorIf you want to know the ins and outs of the SREC markets in simple, actionable language then subscribe to the SREC Market Monitor. This quarterly report covers all of the SREC markets in clear detail. The SREC Market Monitor is a joint partnership publication between SRECTrade and GTM Research.

 

 

Capture

 

In a 2/20/2013 GTM blog post titled, “Oversupply Uncertainty for Massachusetts SREC Market in 2013,” GTM Research highlighted a portion of the analysis found in the Q4 2012 SREC Market Monitor.

February 2013 SREC Auction Results

Posted February 21st, 2013 by SRECTrade.

SRECTrade’s February 2013 SREC Auction closed on 2/1/13. Below are the clearing prices by vintage across the markets covered in the auction.

February SREC Prices SREC Vintage Year
State 2011 2012 2013*
Delaware
Maryland $140.00
Massachusetts $206.12
New Jersey $95.00 $110.00
Ohio In-State $40.00
Ohio Out-of-State $9.00
Pennsylvania $10.00
Washington, DC $366.13 $370.00

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage SRECs are generated beginning in June of 2012.
Green text represents a price increase over the last auction clearing price for that vintage, red text represents a decrease.
“-” 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.

For detailed analysis of SREC market prices and trends please subscribe to the SREC Market Monitor, a joint publication of Greentech Media’s GTM Research and SRECTrade.

State Market Observations:

Delaware: No DE SRECs transacted in the February auction.  Most demand for DE SRECs will be through the DE SEU SREC Procurement Program solicitations. For the latest information on the upcoming 2013 solicitation click here: 2013 DE Program Announcement.

Maryland: MD2012 SRECs have consistently transacted at $140/SREC over the past 3 auction periods. As Q1 2013 comes to a close any compliance entities needing MD12 SRECs will be wrapping up their purchases. It is expected that the market will  experience a small amount of oversupply for the 2012 compliance period.

Massachusetts: MA2012 SRECs traded at $206.12/SREC. SREC issuance volumes in Q1-Q3 2012 and October – December 2012 MWhs reported to the MA CEC demonstrate that 2012’s requirements have been met. The next SREC issuance for Q4 2012 generation will fall on April 15, 2013. The 2012 market will be oversupplied by approximately 50% of this year’s compliance obligation.

New Jersey: NJ2012 and NJ2013 SRECs traded up to $95 and $110/SREC, respectively. The NJ Office of Clean Energy announced total installed capacity through January 2013 was estimated to be 973.4 MW, a monthly increase of approximately 17.4 MW. Monthly install rates continue to surpass RPS requirements.

Ohio: OH2012 Sited SRECs increased to $40/SREC and OH2012 Adjacent SRECs traded at $9/SREC. Both markets are oversupplied. Most demand for OH Sited SRECs has been fulfilled through long term agreements with large utility scale projects or through long term RFPs with the state’s regulated utilities. 2012 compliance obligations are currently being finalized.

Pennsylvania: PA2013 SRECs traded at $10/SREC, $2/SREC less than the January 2013 auction. SREC oversupply continues to impact PA’s market. 

Washington, DC: The 2010, 2011, and 2012 vintages increased to $330, $366.13, and $370/SREC, respectively. Increases in price may continue as the 2012 and 2013 markets are under supplied.

For historical auction pricing please see this link. The next SRECTrade auction closes on Thursday, February 28th at 5 p.m. ET and will cover PJM and MA Solar RECs. The next auction will be the first in which 2013 vintage SRECs will be available in Maryland, Ohio, and Washington, DC. Click here to sign in and place an order.