Solar renewable energy credit prices in Maryland have ramped higher, while values in New Jersey have slipped again.
During the week ended Feb. 16, SRECs in Maryland were priced at $9.38/MWh, up 17 cents on the week. SRECs in the state for 2019 came in at an index of $10.31/MWh, increasing 43 cents from the week prior.
Despite an overabundance of supply, Maryland SREC pricing has increased in recent weeks, due in part to increased buying ahead of the close of the Maryland 2017 compliance year. Maryland 2017 SRECs were eyed most recently at about $7.50/MWh to $10.00/MWh.
"Solar build rates remained strong through the end of 2017 and the 100 megawatt (MW) Great Bay project is now registered in PJM [Generation Attribute Tracking System]. Excluding the Great Bay project, however, the market experienced a 15.7% decline in average MW build per month in the last 6 months vs. the last 12 months (through November). Even though the rates per month are declining, the market saw a push of project registrations heading in to the close of 2017, which is typically normal at year end," according to a report from SRECTrade.
Looking at demand, legislation has been introduced in Maryland that looks to increase the state's overall RPS requirements to 50% by 2030 and hike the solar carve out requirements to 14.5% by 2028. In addition, the bill would also cut the Alternative Compliance Payment for both the tier I and solar markets. The bill will be heard by both the Maryland legislature in early March.
After crumbling more than $10 in value a week earlier, New Jersey solar markets eased much more modestly during the period ended Feb. 16. Garden State energy year 2018 SREC prices were down 34 cents to an average at $221.33/MWh. Energy year 2019 SRECS in the state were pegged at an index at $223.00/MWh, losing $1.67.
In January, SREC markets in New Jersey advanced on active hedging before the start of the Basic Generation Service auction. The sale allows New Jersey's four electric distribution companies to procure electricity supply to serve their basic generation service customers for a three-year period. As wholesale power providers find out their future requirement for the electricity production, they hedge their forward exposure to the SREC obligation under the renewable portfolio standard, which generally works to boost SREC prices early in the year.
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