Following recent strength, solar renewable energy credit markets in New Jersey shifted lower during the week ended Jan. 20. Energy year 2017 SRECs in the state came in at an average of $237.50/MWh, sinking nearly $26 on the week, with the 2018 market marked at an index of $218.75/MWh, tumbling more than $23.
In recent weeks, SREC prices in New Jersey had been ticking higher despite ample supply, which continues to swell. The latest data from the New Jersey Office of Clean Energy showed that as of Dec. 31, 2016, a total of 2,002.99 MW of solar capacity was installed in the state during the month, up more than 65 MW from the end of November 2016.
The New Jersey Assembly Telecommunications and Utilities Committee recently passed a bill that creates an incentive program for solar projects that help relieve grid congestion. Assembly Bill 441 is designed to encourage the growth of utility-scale solar power and requires the Board of Public Utilities, or BPU, to designate five "strategic zones" where solar power would help address congestion on the electric grid.
Under the incentive program, solar panels built in a zone are eligible for a reimbursement for up to 15% of a system's costs. The incentive program would also limit eligibility for the incentives to residential projects that are 25 kW or smaller and non-residential systems up to 2 MW in size, according to the bill.
New Jersey class I REC prices edged up heading into the second half of the month. Prices for vintage 2017 class I RECs came in at an index at $7.94/MWh, up 1 cent on the week.
In the neighboring state of Maryland, democrats are calling for the state's legislature, which has reassembled, to override Gov. Larry Hogan's veto last year of a bill to accelerate the state's renewable energy target. The Clean Energy Jobs Act passed both the Senate and House in April 2016 but was vetoed by Hogan in May 2016. Under the act, Maryland would get 25% of its electricity from renewable sources by 2020, speeding up the prior target of 20% of its power from renewables by 2022.
Maryland solar and non-solar REC markets were mixed in value during the week under review. Solar prices in the state for 2017 were pegged at an index at $21.75/MWh, losing more than $1 week over week. Tier I 2017 REC prices in Maryland came in at an average of $7.63/MWh, up 10 cents from the week prior.
CSAPR emissions static heading into second half of January
Cross-State Air Pollution Rule emissions allowance price indications were unchanged during the week ended Jan. 20.
CSAPR 2017 annual NOx allowances remained in a bid-and-offer range of $3 to $7. CSAPR 2017 seasonal NOx allowances were seen at a level of $400 to $650 again.
CSAPR SO2 Group 1 and Group 2 allowances for 2016 were also unchanged in value on the weekly period, pegged between 50 cents on the bid end and $10 on the offer side.
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