Thursday, May 26, 2011

Sharp Decline in NJ SREC Market

From flettexchange:  "The New Jersey Energy Year 2012 (June 1st 2011 – May 31st 2012) SREC prices have experienced a sharp decline. The precipitous drop in price is due to an expectation of an oversupply of SRECs for New Jersey in the next 12 months."  See article here.

The repayment of the financing for the Union County Solar Panel Project relies heavily on the sale of SRECs.

On May 19th, Tioga Energy announced it is ready to start the Union County Solar Panel Project.  In that announcement, Tioga claims the project will lower electricity costs by approximately 50 percent over 15 years. See here  Would that mean 3.3% savings each year?  Jonathan Williams of the DeCotiis law firm said a 25% immediate reduction would be delivered.  Who knows what to believe.

See video of Williams here (h/t to John Bury for the video).

Today the Governor announced that NJ is withdrawing from RGGI.  See S.L. article here.  It also appears that a new State Energy Master Plan will be revealed soon.

Here's the Union County Improvement Authority May bills for approval list:

Renewable Energy
DeCotiis Fitzpatrick Legal Services 05/03/11 $ 38,608.08
PMK/BSG Group Professional Services 04/08/11 $ 9,588.39
PMK/BSG Group Professional Services 03/07/11 $ 7,624.45


jbken said...

Good research.

For more context here's the full Williams Q&A:

and the full billing to date by DeCotiis, PMK and the UC Alliance ($737,352.26):

NFS said...

I wish the links worked in the comment section, but they don't. Anyway, in the full Williams Q&A video, it appears JW somewhat backs off of the blanket 25% savings claim by clarifying it to mean the electricity that is purchased will be 25% lower than the cost of market electricity. I get that, but initially that is not how he portrayed the savings, especially when he spoke about the Morris model. Obviously, there is no way of knowing how much electricity can be purchased because we don't know how much electricity will be generated.

Even so, as I think you have pointed out, as well as other sources, none of this makes any fiscal sense since it takes tax subsidies and ratepayer monies to finance the entire scheme. So taxpayers aren't saving a dime. The reality is that it's costing us a ton of money.

$737,253.26 already? Like winning the lottery.

NFS said...

At the end of the video Williams explains that the private vendor will reimburse the County for the "seed money". I wonder if Tioga is questioning those fees? Tioga must have its own lawyers and engineers to pay, no? Regardless, I can't imagine that in a private business deal, one party would accept such an arrangement.

The same thing goes on with all the projects between Linden and the UCIA. Linden does not review nor approve bills incurred by the UCIA on Linden projects. To me, that is UNSOUND and I can't believe it goes on.

Anonymous said...

UCIA doesn't answers to ANY ONE !!
Who pays for their delays and their screw-ups? Do they absorb these expenses, do they pass them along to the city- either way its ultimately taxpayer money but i cant figure out how they're even funded. From county funds, state funds?