Maryland and New Jersey solar renewable energy credit prices were aimed lower during the week ended June 14 amid overall light buying interest.
Garden State energy year 2018 SRECs came in at $238.42/MWh, as energy year 2019 SRECs saw an average at $237.08/MWh, losing $3.41 and $2.50, respectively, on the week.
New Jersey SREC markets were lower in the face of abundant supply. As of April 30, the state had installed a cumulative total of 2,473 MW of nameplate solar capacity, according to the New Jersey Office of Clean Energy.
During the period under review, New Jersey class I vintage 2018 and 2019 RECs notched indexes at $7.66/MWh and $8.48/MWh, up 10 cents and 11 cents, respectively, from the week before.
At the end of May, New Jersey Gov. Phil Murphy, a Democrat, signed A. 3723/S. 2314, a bill that, among other things, hikes the state's renewable portfolio standard. The legislation requires 50% of the state's energy to come from class I renewables such as solar and wind by 2030. The state's earlier requirement was for 17.9% of its power by 2021 to come from class I resources.
In the neighboring Maryland market, tier I REC prices were poised higher during the week ended June 14. Maryland vintage 2018 tier I RECs were priced at an average of $7.34/MWh, increasing 11 cents. Maryland vintage 2019 tier I RECs values were seen at an index of $7.86/MWh, rising 12 cents week over week.
Solar markets in Maryland stumbled in value during the second week of June. Maryland calendar-year 2018 SRECs came in at an index of $13.13/MWh, while calendar year 2019 SRECs posted an average of $14.92/MWh. Prices eased 66 cents and $1.37, respectively, on the week.
Maryland SREC prices started to ease in early May after vaulting higher at the end of April in the wake of a load auction, which may have induced a wave of hedge buying, sources had said.
Maryland's utilities offer electric Standard Offer Service to their customers, soliciting supply contracts ranging from three to 24 months. As the providers find out their future obligation for electricity production, they also often begin to hedge their forward exposure to the SREC obligation under the state's renewable portfolio standard, which likely drove SREC pricing in the state higher.
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