Despite abundant supply, New Jersey solar renewable energy credit prices climbed again during the week ended Sept. 6.
Garden State energy-year 2018 SRECs posted an index at $226.25/MWh, rising more than $2 from the week prior. New Jersey 2019 SRECs came in at $220.17/MWh, up $1.50 on the weekly period, as increased demand worked to lift values again.
At the end of July, New Jersey's installed solar capacity was 2,568 MW, up 30 MW on the month, according to the New Jersey Office of Clean Energy.
New Jersey Class I markets extended lower during the week under review due to ongoing lackluster demand. Garden State vintage 2018 class I RECs were priced at $5.74/MWh, falling 44 cents week over week. New Jersey vintage 2019 class I RECs decreased 55 cents to an average of $5.88/MWh.
To the north, the Massachusetts 2018 solar I market was priced at an average of $389.92/MWh, increasing more than $1.00 on the week, while the 2019 solar I market came in at $362.25/MWh, stumbling more than $1.00 from the week prior.
Massachusetts solar II RECs were also mixed during the first week of September. Massachusetts 2018 solar II RECs ran at $290.92/MWh, gaining 69 cents, while the 2019 solar II market came in at $261.08/MWh, down $1.42.
Since the 2017 Solar Credit Clearinghouse Auction cleared in the first round, the Massachusetts Department of Energy Resources, or DOER, has determined that the 2019 compliance obligation for the SREC-I program will be 797,674 MWh and that the minimum standard will be 1.7446% for load executed under contract on or after June 28, 2013. The 2019 Minimum Standard for load under contracts signed before June 28, 2013, will be 1.0967%.
The DOER also said it has set the 2019 compliance obligation and minimum standard for the SREC-II program at 1,060,524 MWh and 2.3195%, respectively. In addition, the DOER calculated the 2019 SREC-II compliance obligation and minimum standard for load under contracts signed after May 8, 2016 as 1,789,567 MWh and 3.9139%, respectively.
In this year's clearinghouse auction, a total volume of 16,812 SREC-Is was bid on by 21 entities, creating more than enough demand to clear the available auction volume of 1,520 credits. In the SREC-II portion of the auction, volume totaled 74,813 from 16 bidders, against the available auction supply of 12,071 SREC-IIs.
The clearinghouse auction is designed as a price support mechanism for the market in years when more SRECs are produced than compliance buyers need. In Massachusetts, the SREC compliance obligation, the amount of SRECs suppliers are required to purchase in any given year, is determined by a formula that takes into account the amount of SRECs to be generated, SRECs banked from previous periods, and the number of SRECs deposited and purchased in the clearinghouse auction.
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