Today, May 23, 2018, New Jersey Governor Phil Murphy finally signed Bill A3723, new legislation to support the states’ renewable energy market. The bill originally passed both houses on April 12th after initially being introduced on March 22nd. Broadly endorsed by clean energy advocates, the legislation ramps up SREC and Non-Solar Class I REC obligations with ambitious targets through the course of the next decade.
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.
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.
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.
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.
New Jersey SRECs have experienced steady pricing pressure since upwards revisions on previously reported monthly installation rates were first announced in July 2016. Uncertainty of build rate revisions and growing concern of large surplus, price trajectory for the most liquid of the forward curve has been largely negative.
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.
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.
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.
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.