New Jersey Board of Public Utilities approves Long-term SREC Contract Bids
April 12, 2011
At its meeting on March 30, 2011, The New Jersey Board of Public Utilities (“Board” or “BPU”) approved the results of the sixth solicitation under the SREC-Based Financing Program for ACE, JCP&L, and RECO. The sixth solicitation was held for a statewide planned quantity of 20,185.719 kW, divided as follows: 5,876.052 kW for JCP&L, 11,933.267 kW for ACE, and 2,376.400 kW for RECO.
In total, one hundred and ninety-one (191) bids were received totaling 40,419.316 kW. The results for the smaller project segment (50 kW and below) are as follows:
- Eight-six (86) bids were received, totaling 1,336.600 kW;
- Fifty-nine (59) awards were made, totaling 777.695 kW;
- Twenty-seven (27) bids totaling 558.905 kW were rejected because pricing was found not to be competitive;
- The average NPV for the recommended awards is $3,165.52 (corresponding to an average SREC price of $447.66/SREC for a ten-year contract);
- The lowest NPV for the recommended awards is $2,819.33 (corresponding to an average SREC price of $398.70/SREC for a ten-year contract).
The results for the larger project segment (above 50 kW) are as follows:
- One hundred and five (105) bids were received, totaling 39,082.716 kW;
- Forty-seven (47) awards were made, totaling 15,788.237 kW;
- Fifty-eight (58) bids totaling 21,797.641 kW were rejected because pricing was found not to be competitive;
- The average NPV for the recommended awards is $2,926.34 (corresponding to an average SREC price of $413.83/SREC for a ten-year contract);
- The lowest NPV for the recommended awards is $2,423.64 (corresponding to an average SREC price of $342.74/SREC for a ten-year contract).
Note: RenergyCo assisted once client in this SREC RFP to be approved to supply SREC’s for ten years @ $450/SREC. This result was well above the average approved contract price.
