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Increased buying interest lifts NJ class I renewable energy credit markets


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Increased buying interest lifts NJ class I renewable energy credit markets

During the week ended Jan. 10, solar and nonsolar renewable energy credit values were varied at market centers across the U.S.

After sliding the week prior, vintage 2019 class I RECs in New Jersey were up 17 cents to an average of $6.24/MWh due to increased buying interest.

New Jersey energy year 2019 solar RECs were priced at an index of $228.50/MWh, increasing 33 cents from the week prior. Prices continued to shift higher even though supply remains plentiful.

At the end of December 2018, the New Jersey Board of Public Utilities, or BPU, published a straw proposal providing additional guidance to the closure of the current SREC program and implementation of a transition program in the state as outlined under the New Jersey clean energy bill.

A. 3723, passed in May 2018, requires 50% of the state's energy by 2030 to come from renewables considered class I, which includes resources such as solar, wind and batteries. New Jersey's previous requirement was for 17.9% of its power to come from class I renewables by 2021. In addition, the legislation moves up a goal to have 5.1% of the state's power derived from solar by 2021 instead of 4.1% by 2028.

The straw proposal outlines a stakeholder process to discuss the specifics of closing the current SREC program and the move to the transition program. The BPU is asking that stakeholders comment on how the attainment of 5.1% of electricity sales from solar will be calculated and how to ensure cost caps are not exceeded during an 18-month period.

In the neighboring Maryland market, reporting-year 2019 SRECs came in at $11.75/MWh during the week ended Jan. 10, losing more than $1.00 on the week.

To the north in New Hampshire, vintage class I REC markets were mixed during the period. New Hampshire class I RECs for 2018 came in at $5.42/MWh, increasing 38 cents, while the 2019 market was pegged at $11.75/MWh, easing 58 cents from the first week of January. Vintage 2019 class III RECs in the state were priced at an index of $18.63/MWh, flat on the week.

New Hampshire Gov. Chris Sununu asked the federal government to form an intergovernmental task force on offshore wind. The state has a renewable portfolio standard target of obtaining 25% of its electricity from renewables by 2025, but it has not established specific procurement goals for offshore wind.

The Bureau of Ocean Energy Management's first stage in developing an offshore wind project, when state and federal governments solicit comments from stakeholders and analyze potential lease areas, takes about two years.

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