Prices for renewable energy credits varied at major markets during the week ended Jan. 3.
After stepping lower during the final week of 2018, New Jersey energy year 2019 solar RECs nudged 4 cents higher to an average at $228.17/MWh. Values were higher despite an ongoing plethora of supply pegged above 2,640 MW of installed solar capacity as of Oct. 31, 2018, according to the New Jersey Office of Clean Energy.
At the end of December 2018, the New Jersey Board of Public Utilities, or BPU, published a straw proposal providing some 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.
Passed in May 2018, A. 3723 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. The state's earlier 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 come specifically from solar by 2021 instead of 4.1% by 2028.
Among other things, the straw proposal outlines a stakeholder process to discuss the specifics of the closure of 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 coming from solar will be calculated and how to ensure cost caps are not exceeded during an 18-month period.
Following gains the week prior, New Jersey class I markets faltered during the week ended Jan. 3 due to limited buying interest. Vintage 2019 class I RECs in New Jersey were eyed at $6.07/MWh, down 6 cents week over week.
Tracking the New Jersey market, vintage 2019 tier I REC prices in Pennsylvania posted an index at $5.86/MWh, easing 2 cents from the final full week of December 2018.
SREC prices in Pennsylvania advanced during the period under review. Reporting year 2019 SRECs in the state were priced at an average of $13.88/MWh, up 60 cents from the week before.