Solar renewable energy credit markets in New Jersey were aimed slightly higher to round out December as well as 2016. Garden State energy year 2017 prices were marked at an index of $235.00/MWh during the week under review, rising more than 60 cents on the week.
New Jersey SREC prices edged up despite a plethora of supply in the state. The latest monthly figures from the New Jersey Office of Clean Energy show that as of Nov. 30, a total of 1,937.6 MW of solar capacity was installed in the state. This was up 26.7 MW from the end of October and represents a slowdown in the installation of new solar capacity in New Jersey.
According to SRECTrade, through the first six months of the year, the New Jersey solar market had added, on average, about 33 MW of new solar capacity per month.
"The recent slowdown in new installation has further supported the idea that [energy year] 2017 will remain fairly balanced in terms of supply and demand. Across a range of scenarios, 2017 will most likely remain well balanced with a projected oversupply of only 2%-3%. Barring a drastic acceleration in new installations, 2018 is also projected to remain fairly balanced," according to SRECTrade.
In Ohio, located RECs for 2016 and 2017 faltered to averages at 88 cents/MWh and $1.13/MWh, respectively, sinking 84 cents and $1.25. Ohio in-state solar markets held firm at $7.33/MWh and $6.75/MWh.
Ohio REC prices have seen little movement of late despite legislative stirrings. Ohio Gov. John Kasich this week vetoed a bill that would have weakened the state's renewable energy and energy efficiency standards, ending a two-year-long freeze on the standards and clearing the way for them to be reinstated as of Jan. 1, 2017.
The vetoed bill has been revised several times since it was introduced in May. Initially, Rep. Ron Amstutz proposed to continue a freeze on the state's renewable energy and solar energy benchmarks for investor-owned utilities at 2014 levels through at least 2027 while eliminating specific peak demand reduction and energy efficiency benchmarks. The bill approved Dec. 9 by the House, however, would have lifted the freeze but made compliance voluntary through 2020. The bill also would have required utilities to meet state benchmarks beginning in 2019.
In 2014, Gov. Kasich signed S.B. 310, which put a hold on the state's renewable energy requirements. The law keeps renewable energy benchmarks at 2014 levels of 2.5% for 2015 and 2016, of which 0.12% of energy must be generated from solar resources. The benchmarks for renewable energy resources increase by 1 percentage point each year from 2017 through 2026, at which time 12.5% of the electricity sold must come from renewable resources such as wind, hydro and biomass, with 0.5% from solar.
The Ohio legislature could override the governor's veto with a three-fifths majority vote in the next session, which begins in January 2017.
CSAPR emissions end month, year with whimper
Ending the month and the year, price indications for Cross-State Air Pollution Rule emissions once again held firm.
CSAPR 2016 seasonal NOx allowances remained in a bid-and-ask spread of $125 to $160 after tumbling steadily from the $200-mark several weeks earlier amid generally lackluster buying interest.
CSAPR 2017 seasonal NOx allowances were assessed in a bid-and-offer range of $350 to $700 during the week ended Dec. 30. CSAPR annual NOx allowances for 2016 were pegged once more between $3 and $10.
CSAPR SO2 Group 1 and Group 2 allowances for 2016 also stayed put, marked at a level between 50 cents to $10.
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