New Jersey solar renewable energy credit markets jumped in value ahead of the state's upcoming Basic Generation Service auction.
Garden State energy year 2018 SRECs were priced at $233.83/MWh, while energy year 2019 SRECs came in at $234.75/MWh, up more than $11 and $15, respectively, week over week,
SREC markets in New Jersey have been advancing due to active hedging in front of the Basic Generation Service, or BGS, auction for residential and smaller commercial customers. The auction began Feb. 2.
The BGS sale allows New Jersey's four electric distribution companies to procure electricity supply to serve their basic generation service customers for three years.
In the auction, electricity providers are awarded parcels of load to be served across the state. As wholesale power providers find out their future obligation for electricity production, they also begin to hedge their forward exposure to the SREC obligation under the renewable portfolio standard.
Price appreciation is also likely in the New Jersey SREC market due to the possibility of increased renewable portfolio standard requirements from the state's new governor, Phil Murphy.
During his campaign, Murphy, a Democrat, said that within the first 100 days following his inauguration, he would begin the process of drafting a new Energy Master Plan that would include a standard requiring 100% of energy consumed in the state to be generated from renewable resources by 2050.
New Jersey's 2011 Energy Master Plan said "clean energy" is to account for 50% of resource needs by 2050, and a recently released 2015 update to the plan apparently maintains that target.
At other New Jersey markets, class I REC prices were firm to a touch lower during the week ended Feb. 2. New Jersey vintage 2018 class I REC prices were steady at an index at $6.50/MWh, while vintage 2019 class I RECs were down 3 cents to an average at $6.75/MWh.

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