MD SREC Market Update: Make Maryland Great Again?

Ali Shajrawi Market Research Briefs

A group of policy makers in Maryland gathered in December to draft a plan to expand and accelerate the state’s existing Renewable Portfolio Standard (RPS) program. Introduced as amendments to the Maryland Clean Energy Jobs Act of 2016, a draft of the proposal circulated in the marketplace early last month. On February 5th, S.B. 921 was introduced in the Senate, proposing to boostthe current RPS to a 25% goal by 2020 from the current mandate of 20% by 2022.

Maryland & DC SREC Market Update

Karbone Market Research Briefs

Maryland and Washington DC present two cases of SREC markets in very different scenarios, highlighting the varied characteristics of the fixed target RPS markets. The DC market in July 2011 closed its borders to SRECs from solar facilities from other states, leading the market to be fundamentally short of supply of SRECs, as DC sited solar project development lagged.

Maryland SREC Market Legislative Update

Karbone Market Research Briefs

Following the successful acceleration of the Solar RPS in 2011, Maryland legislators passed two new bills, Senate Bill (SB) 791 and House Bill (HB) 1187, to accelerate the state’s 2% solar program to 2020 from 2022. The accelerated program will begin in 2013 and increase SREC demand by 1.7m SRECs through 2021 and the potential market size by $345m.

Maryland SREC Market Legislative Update

Karbone Market Research Briefs

Following the successful acceleration of the Solar RPS in 2011, Maryland legislators have proposed a new bill, Senate Bill (SB) 791, to accelerate the program in 2013. This could increase SREC demand by 1.7m SRECs from 2013 through 2021 and the potential market size by $345m.

Maryland SREC Market Overview

Karbone Market Research Briefs

Recent legislation, effective from January 1st 2011, increased the Solar Alternative Compliance Payment (SACP) for 2011 through 2014 to $400/MWh, and the solar percentages from 2011 through 2016. The increased solar percentages raise the demand by more than 400,000 SRECs. Combined with the SACP stabilized at $400/MWh, this increases the market potential up to $38m for the 6-year period to 2016, depending on SREC prices.

Maryland SREC Market Update

Karbone Market Research Briefs

Senate Bill 715 will facilitate the procurement of solar renewable energy credits (SRECS) under long-term contracts as part of the competitive selection of wholesale electricity suppliers.  Long-term contracts will result in lower average SREC prices. The bill recently received an “Unfavorable Report by Finance” in the Senate.

Maryland SREC Market Overview

Karbone Market Research Briefs

Senate Bill 715 will facilitate the procurement of solar renewable energy credits (SRECS) under long–term contracts as part of the competitive selection of wholesale electricity suppliers. Long-term contracts will result in lower average SREC prices. The bill recently received an “Unfavorable Report by Finance”in the Senate.

Maryland SREC Market Overview

Karbone Market Research Briefs

Senate Bill 715 will facilitate the procurement of solar renewable energy credits (SRECS) under long–term contracts as part of the competitive selection of wholesale electricity suppliers. LongXterm contracts will result in lower average SREC prices.