Green-e Eligible Wind and Solar RECs have experienced price convergence recently. This price convergence marks an interesting break from the historical premium at which Green-e Eligible Solar RECs traded compared to wind, primarily due to unique revenue requirements and less installation rates. Nevertheless, recent shifts in the supply & demand dynamics for both commodities have exerted directional pressure on pricing to converge.
Edge of (20)Seventeen: MA SREC-I Price Pop on Last Year’s Generation Drop
Low year-on-year SREC-I generation figures in 2017 prompted an uptick in front-of-the-curve pricing through April. As the table below shows, the per MWh productivity of all systems installed was depressed in each quarter in 2017 compared to 2016.
Pennsylvania Officially Closes Border
On April 19, the Pennsylvania PUC approved a Final Implementation Order for HB118, formally restricting the qualifications of out-of-state solar systems to meet in-state solar compliance requirements, with an exception for any contracted generation that predated the legislation, effective October 2017.
Greenlight for Renewable Incentives in Illinois
On April 3, the Illinois Commerce Commission (ICC) approved a final order that addresses several key issues of how the State will meet its ambitious renewable goals under the Long Term Procurement Plan (LTPP). The attached research brief provides an overview of the changes in the Final Order and their implications.
Arizona Proposals Mandate More Renewables
Arizona is setting out to diversify its fuel mix and promote more renewable energy adoption. This year, two proposals have been put forth to increase Arizona’s current Renewable Energy Standards (RES) target of 15% by 2025, which has already been met by the State’s obligated utilities.The attached research brief provides an overview of the initiatives and their challenges, as well as a cause for hope.
Banking Off of Low-Build Winds: “Tri”-ing to Project PJM Tier I Fundamentals
The PJM Tier I market tested its five-year price lows this past October before mounting a slow but impressive rebound through the first quarter of 2018. While there have been hiccups over the course of this relative recovery, the overall trajectory has been decidedly positive as underlying market fundamentals seem to making a case for forward price strength. Between low installation rates for new qualifying wind facilities, increasing RPS requirements, and ambitious clean energy legislation proposed across a number of states, there is reason to expect tightening supply/demand dynamics on the horizon. The following report details the drivers behind the recent PJM Tier I price resilience and the arguments for potential future appreciation.
SMART’s Predawn Debates: Finalizing Details Before the Solar Regime’s Rise
The completion of the initial RFP on January 11, 2018 has set discrete base compensation rates for each service area in Massachusetts. But the program still needs to clear many hurdles before it is fully implemented. In the following update, Karbone details the problems raised in the ongoing regulatory proceeding.
Jersey Hold’em: Solar Bill Plays Same Hand After Christie’s Pocket Veto
The Illinois Power Agency (IPA) this month filed a final version of its Long-Term Renewable Resources Procurement Plan, building on a proposal of the plan released last October. This plan introduces a number of changes to the IL Renewable Portfolio Standard (RPS), setting ambitious goals and measures to advance the development of new renewable resources in the state.
Tailwinds in Illinois?
The Illinois Power Agency (IPA) this month filed a final version of its Long-Term Renewable Resources Procurement Plan, building on a proposal of the plan released last October. This plan introduces a number of changes to the IL Renewable Portfolio Standard (RPS), setting ambitious goals and measures to advance the development of new renewable resources in the state.
A Bright Future for Solar in Illinois?
Last December, the Illinois state legislature passed SB 2814 concerning the state’s Renewable Portfolio Standard (RPS) program revisions, aiming to promote in-state solar energy project development. Passed as the Future Energy Jobs Bill, SB 2814 seeks to jump start solar development in the state by expanding the existing RPS requirements to include a numerical target to procure RECs from in-state sited solar facilities.
In response to this legislative change, the Illinois Power Authority (IPA) released the highly anticipated long-term procurement plan last September.
In the following research report, Karbone explores the most important changes proposed in the filed plan.