2017 SREC Procurement

The 2017 Procurement Schedule:

  • April 28th – Information on 2017 Solicitation posted at SRECDelaware.com
  • May 22nd- Instructional Webinar Held. View the webinar here.
  • May 29th – Solicitation bid window opens at SRECDelaware.com at 9:00 am
  • June 9th – Solicitation bid window closes at 5:00 PM
  • June 15th- Preliminary Bid Opening held at the Delaware Sustainable Energy Utility
  • July 12th- Auction results announced and Bidders notified

2017 Program Results

Results of the Delaware 2017 SREC Procurement have been announced. Delmarva Power has purchased 20,000 SRECs through the auction. The pooled N-1, E-1, and E-2 tier was oversubscribed and had a bid tie. Per program rules, a random lottery was conducted to award the bids among those bids involved in the bid tie after the tied bids were given the opportunity to lower their bid price. Program rules were also exercised concerning the N-3 tier. According to the 2017 filing by Delmarva Power, if Tier N-1 and/or Tier N-2 have losing bids that are lower priced than winning bids for Tier N-3, such bids will be applied to Tier N-3 in order to minimize the weighted average bid price of Tier N-3. The auction saw a number of losing N-1 bids that were lower priced than bids in N-3, causing N-1 bids to replace bids in the N-3 tier. Delmarva Power did not exercise any price discretion in the auction. The under-subscribed N-2 and N-3 tiers were filled with the lowest price available bids in the auction, which came from N-4. Click here to view the pricing of this year’s auction.

2017 Program Overview

The 2017 Solicitation will consist of seven tiers, four (4) for new systems and three (3) existing systems. The seven tiers are as follows:

New Systems
(systems with final interconnection approval after June 10th, 2016)
Tier Nameplate Rating – (DC at STC) SRECs in Tier
N-1 Less than or equal to 25 kW 4,400*
N-2 Greater than 25 kW but less than or equal to 200 kW 2,300
N-3 Greater than 200 kW but less than or equal to 2 MW 3,300
N-4 Greater than 2 MW 0-10,000
Existing Systems
(systems with final interconnection approval before June 10th, 2016)
Tier Nameplate Rating – (DC at STC) SRECs in Tier
E-1 Less than or equal to 25 kW 4,400 Pool*
E-2 Greater than 25 kW but less than or equal to 2 MW 4,400 Pool*
E-3 Greater than 2 MW 0-10,000

Like the 2016 Program, Tiers N-1, E-1 and E-2 will be a combined pool. For the purposes of acquiring the first 10,000 SRECs, Tiers N-1, N-2, N-3, E-1, and E-2 will be competitively bid. Tiers N-4 and E-3 are excluded from the initial solicitation. Once the first 10,000 SRECs from the protected tiers have been procured Delmarva Power may procure up to 10,000 additional SRECs through the auction using the least expensive available SRECs from any tier (including N-4 and E-3).

If any Tier within the first 10,000 SRECs is undersubscribed because of rejected bids (Delmarva exercises price discretion), bids from any Tier, except Tiers N-4 and E-3, can win those SRECs. If any Tier within the first 10,000 SRECs is undersubscribed because of insufficient bids, bids from any Tier can win those SRECs. Each winning bid will enter into a contract with a term of 20 years. For the first 10 years, the SREC price will be the accepted bid price. For the remaining 10 years, the SREC price will be fixed at $35 per SREC.

*The lowest priced bids from tiers N1, E1, and E2 will all compete for the same pool of 4,400 SRECs.

For a download of the full Delmarva Filing from 2017 and a copy of the 2017 Transfer Agreement please click here.

Changes from 2016 Program

The 2017 program has the following substantive changes from the 2016 program:

  • The number of additional SRECs Delmarva may opt to buy through the auction after the 10,000 allotted SRECs has increased from 6,000 SRECs to 10,000 SRECs.
  • Tiers N-4 and E-3 have been added to allow systems larger than 2 MW to bid into the auction for the additional SRECs Delmarva may opt to buy.

 


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