Registering Renewable Energy Generation for Tracking and Ultimate Sale of Renewable Energy Credits (REC s)

Transcription

1 Registering Renewable Energy Generation for Tracking and Ultimate Sale of Renewable Energy Credits (REC s) Tom Mossinger Carollo Engineers rwave.pptx/1 Energy Management Committee April 28, 2011 Whittier, CA

2 What Are Renewable Energy Credits And Why Are They Important? REC s are a means to track and manage renewable energy generation Allows for compliance with renewable portfolio standards Supports regulatory compliance rwave.pptx/2

3 REC s Why Do It? rwave.pptx/3 In the Western US REC s are typically banked by WREGIS Western Renewable Energy Generation Information System Central place for management of RECs REC can be Retired, Reserved or Exported to other tracking systems REC s are traded openly on various markets across US All renewable power is eligible for participation in the REC market Value depends d on when, where and how REC s are generated Only kw generated from renewable source is eligible

4 REC Markets Wave.pptx/4

5 REC Purchasers Power Companies often purchase to meet RPS Third parties purchase on open market REC s are typically sold by brokers in bundles of 10,000 REC s or more Current value per OET and discussions with Brokers is $5 to $10/REC California s pending TREC rwave.pptx/5 market could raise value to as much as $50/REC

6 How Are REC s Generated? rwave.pptx/6 1 MW-hr of renewable power = 1 REC Includes all Environmental and Renewable Attributes Energy sources include: Hydro (sometimes!) Solar power Wind power Power generated using renewable fuels Biomass (green wastes/trees/sawgrass/etc.) Algae Biogas (Digester and Landfill)

7 How Do We Track Our REC s? Generate renewable power Solar, wind, small hydro and/or digester/landfill gas Get Eligible Renewable Facility Certification with CEC Create an online account with WREGIS rwave.pptx/7 Track and manage RECs

8 Who Is Tracking REC s? rwave.pptx/8 LACSD Engines and Turbines at landfill s & WWTP s Monterey Regional Water Pollution Control Agency Solar & Engines at WWTP Eastern Municipal Water District Fuel cells at WWTP Solar Rancho California Water District Solar Others????

9 REC Accounts rwave.pptx/9 Accounts are set up within the local electricity grids Western Electricity Coordinating Council (WECC)

10 rwave.pptx/10 The Western Renewable Energy Generation Information System (WREGIS) is an independent, renewable energy tracking system for the region covered by the Western Electricity Coordinating Council (WECC) WREGIS tracks renewable energy generation from units that register in the system using verifiable data and creates renewable energy certificates t (RECs) for this generation WREGIS Certificates can be used to verify compliance with state and provincial regulatory requirements (Renewable Portfolio Standards, for example) and in voluntary market programs

11 WREGIS Account Set Up Procedure rwave.pptx/11 Register with Complete and mail Account Registration Packet and Application Fee to WREGIS Receive confirmation Register Generation Units Confirm/ Install Gas and power meters meeting WREGIS requirements. Send Verification packet. Receive Final Approval from WREGIS.

12 Gas and Power Meter Compliance Requirements rwave.pptx/12 Power Meters Power meters meeting ANSI C-12 Accuracy requirements 2% or better Fuel Meters Power Meter Dedicated Fuel meters for each generation unit if using renewable fuel along with NG, Typical Accuracy +/- 1% Fuel Meter

13 CEC Registration Get Eligible Renewable Facility Certification for California s RPS program Participation This Certification allows REC trading with utilities with mandatory RPS program participation Complete CEC form CEC-RPS-1A gov/2007publications/cec /forms/CEC-RPS-1A-S1- Biofuels.pdf rwave.pptx/13

14 CEC Certification Application Wave.pptx/14

15 Tracking REC s Once Registered REC production is reported monthly Generators less than 360 kw can be self reported Larger systems must be reported by a Qualified Reporting Entity rwave.pptx/15

16 What is a QRE? rwave.pptx/16 Qualified Reporting Entity QRE Candidates: Balancing Authorities Load Serving Entities Generator Aggregators Meter Readers Independent Third Party QRE s must be registered with WREGIS

17 Qualified Reporting Entitie s rwave.pptx/17 Most Utilities are certified QRE s They will provide QRE service for free for projects which they are buying REC s Other third party firms have to be certified to be QRE s These firms provide QRE service for a fee; typically $4,000 to $6,000 for 1 MW 2 MW systems Facility Owners could become certified as a QRE if desired Typically only done by large power generators

18 Example Third Party QRE s Registed with WREGIS within WECC Region Fat Spaniel Technologies VIASYN Services Trimark Associates California ISO rwave.pptx/18

19 REC Example Calculation Assumed Generation System: 1,000 kw generator 90% availability 1,000 kw x 8,760 hr/yr x 0.9 = 7,884,000 kwh 7,884,000 kwh/yr = 7,884 MWh/yr rwave.pptx/19 7,884 MWh = 7,884 REC s

20 Once Generated & Deposited with WREGIS; Now What? rwave.pptx/20 Use to meet mandatory GHG emission reductions Retire RECs to meet mandated GHG reductions Export RECs to other compatible tracking systems WWTP s s are currently not expected to be required to meet mandated reductions

21 Once Generated & Deposited with WREGIS; Now What? rwave.pptx/21 Sell Them! Transfer to other WREGIS account Holder Reserve to transfer it to non compatible tracking systems or users.

22 How Are REC s Sold Most purchases are for large blocks (10, REC s or more) Solicit purchase (RFP) Sales typically through Brokers rwave.pptx/22

23 REC s can Provide Significant Revenue rwave.pptx/23 REC Value REC Value* (1000 kw $5/REC $10/REC $50/REC generator) $ 39,500 $ 79,000 $ 395,000 Broker Fee (5%) $ (1,975) $ (3,950) $ (19,750) WREGIS Fee $ (850) $ (850) $ (850) QRE Fee $ (5,000) $ (5,000) $ (5,000) Total Annual Revenue $ 31,675 $ 69,200 $ 369,400 *REC value = (MW) x (hr/yr) x (value, $/MW-hr)

24 Frequently Asked Questions on REC s Question Answer If I sell my REC s does it conflict with GHG reduction credit? No Is there risk to the Owner (District, Agency, City)? Are other Agencies doing this? No Yes rwave.pptx/24 Does Carollo have experience assisting with REC reporting and sales? Yes

25 Questions? Wave.pptx/25