(RECs) Tom Mossinger Carollo Engineers Tom Mossinger Carollo - PowerPoint PPT Presentation

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

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 rWave.pptx/2 CarolloTemplateWater

REC’s – Why Do It? • In the Western US REC’s are typically “banked” by WREGIS – Western Renewable Energy Generation I f Information System ti S t • 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 • Value depends on when, where and how REC’s are V l d d h h d h REC’ generated rWave.pptx/3 • Only kW generated from renewable source is eligible Only kW generated from renewable source is eligible CarolloTemplateWater

REC Markets rWave.pptx/4 CarolloTemplateWater

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

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

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 Certification with CEC tifi ti ith CEC • Create an online account with WREGIS • Track and manage RECs rWave.pptx/7 CarolloTemplateWater

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 • Rancho California Water District rWave.pptx/8 – Solar • Others???? Oth ???? CarolloTemplateWater

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

• 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 creates renewable energy certificates (RECs) for this t bl tifi t (REC ) f thi generation • WREGIS Certificates can be used to verify compliance WREGIS Certificates can be used to verify compliance with state and provincial regulatory requirements rWave.pptx/10 (Renewable Portfolio Standards, for example) and in voluntary market programs voluntary market programs CarolloTemplateWater

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 • Receive confirmation Email R i fi ti E il • Register Generation Units • Confirm/ Install Gas and power meters meeting WREGIS requirements. • Send Verification packet. rWave.pptx/11 • Receive Final Approval from WREGIS. Receive Final Approval from WREGIS. CarolloTemplateWater

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

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 rWave.pptx/13 CarolloTemplateWater

CEC Certification Application rWave.pptx/14 CarolloTemplateWater

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 rWave.pptx/15 CarolloTemplateWater

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

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 y desired rWave.pptx/17 – Typically only done by large power generators CarolloTemplateWater

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 • California ISO rWave.pptx/18 CarolloTemplateWater

REC Example Calculation • Assumed Generation System: • Assumed Generation System: –1,000 kW generator –90% availability 90% il bilit 1 000 kW 1,000 kW x 8,760 hr/yr x 0.9 = 7,884,000 kWh 8 760 h / 0 9 7 884 000 kWh 7,884,000 kWh/yr = 7,884 MWh/yr 7,884 MWh = 7,884 REC’s rWave.pptx/19 CarolloTemplateWater

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  WWTP s are currently not expected to be required to meet mandated rWave.pptx/20 reductions reductions CarolloTemplateWater

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

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 rWave.pptx/22 CarolloTemplateWater

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

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

? Questions? ti Q rWave.pptx/25 CarolloTemplateWater