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Mar 10, 2023 362 likes •634 views

Registering Renewable Energy Generation for Tracking and Ultimate Sale of Renewable Energy Credits gy (RECs) Tom Mossinger Carollo Engineers Tom Mossinger Carollo Engineers rWave.pptx/1 Energy Management Committee

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SLIDE 1

Registering Renewable Energy Generation for Tracking and Ultimate Sale of Renewable Energy Credits gy

(REC’s)

Tom Mossinger – Carollo Engineers Tom Mossinger Carollo Engineers

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Energy Management Committee

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April 28, 2011 Whittier, CA

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SLIDE 2

What Are Renewable Energy Credits And Why Are They Important? And Why Are They Important?

  • REC’s are a means to

track and manage track and manage renewable energy generation

  • Allows for compliance

Allows for compliance with renewable portfolio standards

  • Supports regulatory
  • Supports regulatory

compliance

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SLIDE 3

REC’s – Why Do It?

  • In the Western US REC’s are typically “banked” by

WREGIS – Western Renewable Energy Generation I f ti S t Information System

  • Central place for management of RECs
  • REC can be Retired Reserved or Exported to other
  • REC can be Retired, Reserved or Exported to other

tracking systems

  • REC’s are traded openly on various markets across US

p y

  • All renewable power is eligible for participation in the REC

market V l d d h h d h REC’

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  • Value depends on when, where and how REC’s are

generated

  • Only kW generated from renewable source is eligible

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Only kW generated from renewable source is eligible

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SLIDE 4

REC Markets

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SLIDE 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

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California’s pending TREC market could raise value to

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market could raise value to as much as $50/REC

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SLIDE 6

How Are REC’s Generated?

  • 1 MW-hr of renewable power = 1 REC
  • Includes all Environmental and Renewable
  • Includes all Environmental and Renewable

Attributes E i l d

  • Energy sources include:

– Hydro (sometimes!) Solar po er – Solar power – Wind power – Power generated using renewable fuels

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– Power generated using renewable fuels

  • Biomass (green wastes/trees/sawgrass/etc.)
  • Algae

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  • Biogas (Digester and Landfill)
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SLIDE 7

How Do We Track Our REC’s?

  • Generate renewable power

Generate renewable power

–Solar, wind, small hydro and/or digester/landfill gas digester/landfill gas

  • Get “Eligible Renewable Facility”

C tifi ti ith CEC Certification with CEC

  • Create an online account with WREGIS

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  • Track and manage RECs

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SLIDE 8

Who Is Tracking REC’s?

  • LACSD

– Engines and Turbines at landfill’s & WWTP’s

  • Monterey Regional Water Pollution Control Agency

y g g y

– Solar & Engines at WWTP

  • Eastern Municipal Water District

– Fuel cells at WWTP – Solar

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  • Rancho California Water District

– Solar

Oth ????

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  • Others????
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SLIDE 9

REC Accounts

  • Accounts are

set up within the local electricity grids electricity grids

  • Western

Electricity Electricity Coordinating Council

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(WECC)

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SLIDE 10
  • The Western Renewable Energy Generation

gy Information System (WREGIS) is an independent, renewable energy tracking system for the region covered by the Western Electricity Coordinating Council (WECC) by the Western Electricity Coordinating Council (WECC)

  • WREGIS tracks renewable energy generation from units

that register in the system using verifiable data and t bl tifi t (REC ) f thi creates renewable energy certificates (RECs) for this generation

  • WREGIS Certificates can be used to verify compliance

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WREGIS Certificates can be used to verify compliance with state and provincial regulatory requirements (Renewable Portfolio Standards, for example) and in voluntary market programs

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voluntary market programs

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SLIDE 11

WREGIS Account Set Up Procedure

  • Register with www.wregis.org
  • Complete and mail Account Registration
  • Complete and mail Account Registration

Packet and Application Fee to WREGIS R i fi ti E il

  • Receive confirmation Email
  • Register Generation Units
  • Confirm/ Install Gas and power meters

meeting WREGIS requirements.

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  • Send Verification packet.
  • Receive Final Approval from WREGIS.

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Receive Final Approval from WREGIS.

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SLIDE 12

Gas and Power Meter Compliance Requirements Requirements

  • Power Meters

Power Meters

– Power meters meeting ANSI C-12 ANSI C 12 – Accuracy requirements 2%

  • r better

Power Meter

  • Fuel Meters

– Dedicated Fuel meters for

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Dedicated Fuel meters for each generation unit if using renewable fuel along

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with NG, – Typical Accuracy +/- 1%

Fuel Meter

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SLIDE 13

CEC Registration

  • Get “Eligible Renewable Facility” Certification for

California’s RPS program Participation California s RPS program Participation

  • This Certification allows REC trading with utilities

with mandatory RPS program participation with mandatory RPS program participation

  • Complete CEC form CEC-RPS-1A
  • http://www energy ca gov/2007publications/CEC-
  • http://www.energy.ca.gov/2007publications/CEC-

300-2007-006/forms/CEC-RPS-1A-S1- Biofuels.pdf

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SLIDE 14

CEC Certification Application

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Tracking REC’s Once Registered

  • REC production is reported monthly
  • REC production is reported monthly

–Generators less than 360 kW can be self reported reported –Larger systems must be reported by a Q alified Reporting Entit Qualified Reporting Entity

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SLIDE 16

What is a QRE?

  • Qualified Reporting Entity
  • QRE Candidates:

 Balancing Authorities  Balancing Authorities Load Serving Entities Generator Aggregators Generator Aggregators Meter Readers

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Independent Third Party

  • QRE’s must be registered with WREGIS

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SLIDE 17

Qualified Reporting Entitie’s

  • Most Utilities are certified QRE’s

Q

– 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 – 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

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y desired

– Typically only done by large power generators

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SLIDE 18

Example Third Party QRE’s Registed with WREGIS within WECC Region WREGIS within WECC Region

  • Fat Spaniel Technologies

Fat Spaniel Technologies

  • VIASYN Services

VIASYN Services

  • Trimark Associates
  • Trimark Associates
  • California ISO

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  • California ISO

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SLIDE 19

REC Example Calculation

  • Assumed Generation System:
  • Assumed Generation System:

–1,000 kW generator 90% il bilit –90% availability

1 000 kW 8 760 h / 0 9 7 884 000 kWh 1,000 kW x 8,760 hr/yr x 0.9 = 7,884,000 kWh 7,884,000 kWh/yr = 7,884 MWh/yr

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7,884 MWh = 7,884 REC’s

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SLIDE 20

Once Generated & Deposited with WREGIS; Now What? Now What?

  • Use to meet mandatory GHG

y emission reductions

  • “Retire” RECs to meet mandated GHG
  • Retire RECs to meet mandated GHG

reductions

  • “Export” RECs to other compatible
  • Export RECs to other compatible

tracking systems

  • WWTP’s are currently not expected to

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  • WWTP s are currently not expected to

be required to meet mandated reductions

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reductions

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SLIDE 21

Once Generated & Deposited with WREGIS; Now What?

  • Sell Them!

Now What?

Sell Them!

  • “Transfer” to other

WREGIS account WREGIS account Holder

  • “Reserve” to transfer

it to non compatible tracking systems or

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users.

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SLIDE 22

How Are REC’s Sold

  • Most purchases are for large blocks

(10 000 REC’ ) (10,000 REC’s or more)

  • Solicit purchase (RFP)

p ( )

  • Sales typically through Brokers

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SLIDE 23

REC’s can Provide Significant Revenue REC REC Value $5/REC $10/REC $50/REC

REC Value* REC Value

(1000 kW generator)

$ 39,500 $ 79,000 $ 395,000 Broker Fee Broker Fee

(5%)

$ (1,975) $ (3,950) $ (19,750) WREGIS Fee $ (850) $ (850) $ (850)

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( ) ( ) ( ) QRE Fee $ (5,000) $ (5,000) $ (5,000) Total Annual $ $ $

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Revenue $ 31,675 $ 69,200 $ 369,400 *REC value = (MW) x (hr/yr) x (value, $/MW-hr)

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SLIDE 24

Frequently Asked Questions on REC’s Q ti A Question Answer

If I sell my REC’s does it conflict with GHG reduction credit? No reduction credit? Is there risk to the Owner (District, Agency, No City)? Are other Agencies doing this? Yes

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Does Carollo have experience assisting with REC reporting and sales? Yes

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SLIDE 25

Q ti ? Questions?

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