Massachusetts and New Jersey solar renewable energy credit markets chopped around during the week ended July 26.
Garden State energy year 2018 SRECs were about 42 cents stronger at an average of $214.75/MWh, while energy year 2019 was down 67 cents on the week at an index of $209.83/MWh.
REC prices in New Jersey ran mixed despite a backdrop of ample supply in the state. As of June 30, total installed solar capacity in New Jersey sat at 2,538 MW, up from 2,500 MW at the end of May, according to the New Jersey Office of Clean Energy.
New Jersey class I REC markets extended lower amid limited buying interest during the week ended July 26. Vintage 2018 and 2019 class I RECs in the state came in at averages of $7.38/MWh and $7.88/MWh, easing 3 cents and 6 cents, respectively, from the week prior.
To the north, during the week ended July 26, the Massachusetts 2018 solar I market was assessed at an index of $387.00/MWh, down more than $2.50 on the week. The Massachusetts 2018 solar II market saw a weekly average of $286.25/MWh, rising more than 80 cents in value.
The Massachusetts Department of Energy Resources, or DOER, is holding the first round of the Massachusetts clearinghouse auction July 26. 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.
Earlier this month, the DOER issued a revised version of the 2018 SREC II minimum standard calculation and a preliminary version of the 2019 SREC I and SREC II minimum standards. The 2018 SREC II minimum standards were cut from 2.7802% to 2.6823% for load contracts inked between April 25, 2014, and May 8, 2016, and from 4.1661% to 4.0683% for contracts after May 8, 2016.
The DOER estimates a 2019 SREC I minimum standard of 1.1189% for load executed under contract prior to June 28, 2013, and if the auction clears in the first or second round, 1.7809% for load executed under contract on or after June 28, 2013.
The DOER estimates 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. This also only applies if the auction clears the first or second round.
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