December 2011 SRECTrade Auction Results

SRECTrade's December 2011 SREC Auction closed last week. Below are the clearing prices by vintage across the markets SRECTrade is currently active in.

Notes: *Delaware, New Jersey and Pennsylvania operate on a June-May energy year. Green text represents a price increase over the last auction clearing price for that vintage, red text represents a decrease. "-" reflects no sale, which would result if there were no matching bids and offers that cleared for a sale in the auction.

State Market Observations:

Please note, all capacity references are from the latest SRECTrade capacity analysis and reference the amount of supply registered as of the end of November. Additional details regarding SREC issuance are provided in the capacity analysis.

Delaware (Supply: 22.8 MW | Demand: 19.5 MW): Legislation increasing the SREC requirement went into effect this past June but the market has yet to pick up in response. The Delaware PSC approved the SREC Procurement Pilot Program for long term contract solicitations. Meanwhile, the SREC market will likely pick up at the end of the energy year when electricity suppliers are more active.

Maryland (In-state Supply: 33.5 MW | Demand: 26.9 MW): SRECs increased 5.0% in value to $210 this past auction period. The state seems on pace to maintain a balanced supply relative to demand for the compliance year. As 2011 comes to an end, a shortage of SRECs in the state, if any, will be reflected by an increase in prices at the end of the trading period in the first quarter of 2012. Out-of-state SRECs continue to be a non-factor in Maryland.

Massachusetts (Operational Supply: 30.9 MW | Demand: 55.7 MW): Mass SREC values declined slightly to $530, from $535, in the December 2011 auction. Volume during this period was lower as most supply traded in the auction post the Q2 2011 issuance on October 17, 2011. The next big quarterly MA SREC auction will close on Monday, January 16, 2012.

New Jersey (Supply: 448 MW | Demand: 368 MW): The 2012 market stayed flat at $225 this trading period. Approximately 15% of the available supply in the auction cleared, representing a gap between buyer and seller's expectation of value. Oversupply continues to grow as the state has averaged 27.1 MW installed per month since the beginning of the compliance period. Estimates for October 2011 are forecast at approximately 44 MW. For a more in depth look at New Jersey's capacity and SREC issuance see this post.

Ohio (In-State Supply: 27.7 MW  Out-of-state Supply: 61.3 MW | Demand: 37.7 MW) : In-state SRECs dropped 2.5% to $370/SREC. The out-of-state SREC market saw activity, but declined in value from $55/SREC to $30/SREC.

Pennsylvania (Supply: 152.0 MW | Demand 40.4 MW): PA2011 SRECs stayed flat at $10/SREC and PA2012 declined from prior periods to $18/SREC. HB 1508 was recently introduced to address the state's SREC market. This marks the beginning of a long process to rescue the PA SREC market. Until then, SRECs will continue to bottom out.

Washington, DC (Supply: 21.5 MW | Demand: 41.9 MW): Prices continue to increase as new legislation closing the DC market borders and increasing requirements take effect on the market.

For historical pricing please see this link. The order window for the January 2012 auction will close on Friday, January 6, 2012 at 5:00 p.m Eastern.