On August 11, 2017, Massachusetts regulators filed the proposed final version of CMR 7.75, the Clean Energy Standard (CES), a plan to cut state GHG emissions by 80% of their 1990 levels by 2050. To achieve this aggressive target, the state is going to rely on the procurement of long-term contracts to import hydropower from Canada, as well as the development of more renewable resources, such as wind and solar. Ultimately, however, whether this new mandate can achieve its compliance targets is going to require not only committed project development capital, but also large investments in new transmission lines.
On August 11, 2017, the Massachusetts Department of Energy Resources (DOER) filed a much anticipated final version of the Solar Massachusetts Renewable Target (SMART) Program regulation. This revised SMART framework proposition includes several components that market participants heavily discussed during three public hearings as critical to the success of this program and its objectives.
Solar developers have anxiously awaited the outcome of the New York Reforming the Energy Vision (REV) and the new compensation mechanism for distributed energy resources. Many components of the new market design provide more predictability around the clean energy mandate and market fundamentals. Nevertheless, there are currently several programs that provide different incentive levels, creating a complicated system that may hinder the state’s ability to meet its ambitious “50 by 30” goal, which requires the state to retain its renewable generation and avoid significant exports into adjacent Control Areas.
On February 6, 2017, Pennsylvania lawmakers introduced Senate Bill 291 concerning Alternative Energy Portfolio Standard (AEPS) revisions that aimed at promoting and advancing in-state solar energy project development. As introduced, the proposal seeks to jump-start solar development in the state by restricting eligibility under the AEPS to PA-sited only facilities and expanding the solar requirements to stimulate more build. Senate Bill 291 aims to boost the current solar AEPS requirements to 1.5% by 2023 from the current mandate of 0.5% by 2021.
There has been continued year-on-year supply growth in the NEPOOL Class I REC market across all states and almost all technologies. The following report explores the resulting supply and demand fundamentals and analyzes the pricing trends and legislative impact on this particular market.
On January 31, 2017, Massachusetts policy makers unveiled a much anticipated, revised solar program that radically transitions solar incentives away from the SREC market and towards a structure akin to a feed-in-tariff regime. Nevertheless under the new program, facilities will still generate Class I RECs that could be used to meet MA Class I compliance obligations.
A rising tide around the Basic Generation Service (BGS) Auction has been lifting all New Jersey SREC vintages, with prices for the forward three years of the curve (EY2017, EY2018, and EY2019) erasing most of their losses from November’s market-wide sell-off.
In this research brief, Karbone discusses the background of Oregon’s RPS and provides an overview of the market prior to S.B. 1547. The report then addresses the implications of the new legislation on demand and supply fundamentals in the Oregon REC market.
Over the past year, the Massachusetts SREC-II program has been facing significant programmatic risks as both the net metering and the solar carve-out caps were quickly reached. In April, Massachusetts lawmakers finally passed net metering reform that increased the private and the public caps by 3%, allowing the build of a large number of commercial solar projects that had accumulated on the waiting list for months. In the same month, the Department of Energy Resources (DOER) filed an emergency regulation after receiving a quantity of SREC-II applications in-excess of the available remaining capacity under the SREC-II program cap. The emergency regulations contained several key provisions that aimed to address market uncertainty and establishing a smooth transition to the next incentive program beyond SREC-II.
Despite a post-BGS retreat, New Jersey SREC prices have climbed steadily since the beginning of the spring through much of Q2 2016, retesting four-year highs for front-of-the-curve vintages.