Revised- Final SREC 1 & SREC II Auction Totals/Preliminary 2020 Minimum Standards
Dear Solar Stakeholder,
Following further review, a few corrections were required. Below is the corrected version with the text highlighted in red indicating the changes that were made. Also, click here for a link to the revised worksheet.
Regards,
Eric Steltzer
Dear Solar Stakeholder,
DOER would like to announce the final certificates available for auction in this year’s Annual Solar Credit Clearinghouse Auction I and II, as well as the preliminary CY 2020 SREC I and SREC II Minimum Standards.
Final SREC I and SREC II Auction Totals
The total number of certificates deposited into the Solar Credit Clearinghouse Auction Accounts are as follows:
SREC I: 632
SREC II: 4,626
Preliminary 2020 SREC I and II Minimum Standards
Pursuant to 225 CMR 14.07(2) and (3), the Department of Energy Resources (DOER) is required to calculate the Solar Carve-out and Solar Carve-out II Compliance Obligations and Minimum Standards for each Compliance Year by no later than August 30th of the preceding year. As has been the practice to date, DOER announces a preliminary Compliance Obligation and Minimum Standard prior to conducting the Solar Credit Clearinghouse Auctions (“Auctions”) each July. For Compliance Year 2020, the formula in 225 CMR 14.07(2)(g) will be used to calculate the Solar Carve-out Compliance Obligation, and the formula in 225 CMR 14.07(3)(e) and (f) will be used to calculate the Solar Carve-out II Compliance Obligation.
DOER emphasizes that this is only a preliminary announcement and that final Minimum Standards will be announced no later than August 30th.
Solar Carve-out (SREC I Program)
Based on the information available at this time, DOER estimates that the 2020 Compliance Obligation for the SREC I Program will be approximately 764,036 MWh and that the Minimum Standard will be approximately 1.6449%. Should this year’s SREC I Auction not fully clear in the first two rounds, the 2020 Compliance Obligation and Minimum Standard will remain the same. The details of how this preliminary Minimum Standard was calculated are available on the DOER’s website.
The 2020 Minimum Standard for load served under contracts executed prior to June 28, 2013 will be 1.0071%.
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Retail Supply Contract Execution Date
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Preliminary 2020 Minimum Standard
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If Auction Clears First or Second Round
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If Auction Clears Third Round
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Solar Carve-out II (SREC II Program)
Pursuant to 225 CMR 14.07(3)(a)1, all Retail Electricity Suppliers are exempt from any incremental obligations resulting from the provisions contained in the RPS Class I Emergency Regulation filed on April 8, 2016, which expanded the Solar Carve-out II (SREC II) Program Capacity Cap. As such, it is necessary for DOER to establish a baseline Compliance Obligation and Minimum Standard that would have applied had the Emergency Regulation not been filed.
To determine this baseline Minimum Standard, DOER analyzed the percentage shares of MW qualified under each of the four SREC II Market Sectors at the time the extension was announced. DOER then multiplied these percentages by the original 947.7 MW SREC II Program Capacity Cap. DOER multiplied these totals by the applicable SREC Factors, a 13.35% expected capacity factor, and 8,760 hrs/year and determined the expected MWh/year that would have resulted had the SREC II Program Capacity Cap remained 947.7 MW. Lastly, DOER added the auction certificates and banked SREC II volume from the 2018 Compliance Filings. This yields a total baseline Compliance Obligation of 1,044,390 MWh and a Minimum Standard of 2.2485%:
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% Share of Qualified Capacity
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MW at Original SREC II Cap
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If the upcoming SREC II Auction does not fully clear in the first two rounds, the baseline Compliance Obligation and Minimum Standard for 2020 will be 1,049,016 MWh and 2.2585%, respectively.
Using all of the available information at this time, DOER has also calculated the preliminary 2020 SREC II Compliance Obligation and Minimum Standard for load under contracts signed on or after May 8, 2016. DOER has determined that the Compliance Obligation will be approximately 1,769,130 MWh and that the Minimum Standard will be approximately 3.8088%. Should this year’s SREC II Auction not fully clear in the first two rounds, the 2020 Compliance Obligation and Minimum Standard will be increased to 1,773,756 MWh and 3.8188%, respectively. The details of how this preliminary Minimum Standard was calculated are also available on the DOER’s website.
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Solar Carve-Out II (SREC II)
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Retail Supply Contract Execution Date
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Preliminary 2020 Minimum Standard
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If Auction Clears First or Second Round
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On or after 4/25/2014 and before 5/8/2016
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If Auction Clears Third Round
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On or after 4/25/2014 and before 5/8/2016
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Next Steps
The first rounds of both the SREC and SREC II Solar Credit Clearinghouse Auctions are scheduled to take place on July 25, 2019. Should these auctions not fully clear, second and third rounds will be held as necessary on July 26, 2019 and July 29, 2019, respectively. Once both auctions have concluded, DOER will be able to make its final determination of the Compliance Obligations and Minimum Standards for 2020. The announcement of these final Minimum Standards will occur no later than August 30, 2019.
DOER reminds interested bidders that the application deadline to participate in this year’s Auctions is today, July 15, 2019. More information on the auctions taking place later this month is available on the DOER’s auction website
Regards,
Eric Steltzer
Acting Director, Renewable and Alternative Energy Division
Department of Energy Resources