Despite ample supply, New Jersey solar renewable energy credit prices continued to advance in value during the week ended Aug. 9. Energy year 2018 SRECs in the state were priced at $217.00/MWh, up almost 75 cents, with energy year 2019 SRECs posting an index at $214.50/MWh, rising $2.00 week over week.
Despite the bump higher in prices, solar supply is not lacking in New Jersey. As of June 30, total installed solar capacity in the state was 2,538 MW, up 38 MW from the month prior, figures from the New Jersey Office of Clean Energy show.
Also in New Jersey, class I REC prices eased again due to lackluster buy-side interest during the first week of August. Vintage 2018 and 2019 class I RECs ran at averages of $7.31/MWh and $7.60/MWh, declining 7 cents and 28 cents, respectively, week over week.
The Massachusetts 2018 solar I market was priced at an average of $385.00/MWh, down nearly $2.00 on the week, while the 2019 solar I market came in at $365.83/MWh, up 41 cents from the week prior. The Massachusetts 2018 solar II market saw an average at $286.50/MWh, increasing 42 cents, while the 2019 solar II market notched an index at $264.58/MWh, down 42 cents week on week.
Participants are still awaiting the final results of the 2017 Solar Credit Clearinghouse Auction from the Massachusetts Department of Energy Resources, or DOER. The agency said the auction fully cleared in the first round.
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, 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.
Since the auction cleared in the first round, the DOER has estimated a 2019 SREC I minimum standard of 1.1189% for load executed under contract prior to June 28, 2013, and 1.7809% for load executed under contract on or after June 28, 2013. The agency also has projected a 2019 SREC II minimum standard of 2.3680% for load executed under contract between April 25, 2014, and May 8, 2016, and 3.9697% for load executed under contract on or after May 8, 2016.
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