Presentation on theme: "Western Governors Association Renewable Energy Certificates Initiative for the West WRAP Board Meeting October 15, 2003 Salt Lake City, Utah."— Presentation transcript:
Western Governors Association Renewable Energy Certificates Initiative for the West WRAP Board Meeting October 15, 2003 Salt Lake City, Utah
A REC by any other name… Renewable Energy Certificates Green Tags Green Tickets Renewable Certificates TRC (Tradable Renewable Certificates) Typically MWh = 1 REC
What are RECs? Production of Electricity from Renewable Energy Environmental Attributes Commodity Electricity Growing recognition that electricity generated from renewable energy sources comprises two distinct tradable commodities – the underlying electricity and the “green” attributes.
RECs Transaction Power Green Attributes- (REC) Green Tag 2¢/kWh UtilityPower10¢/kWh Power 10¢/kWh Customers Customers Power Pool (Transmission System) Power Power
Why are RECs an Important Policy for WRAP? Improves economics of western renewable energy sources. 309 SIP accounting of renewable energy generation. Accounting of emissions displacement from renewable energy under section 308. Efficient verification of compliance with state and tribal renewable regulatory policies.
Western States with RPS. RPS recently considered RPS recently considered RPS passed
States with “Green Pricing” Programs. Certificates-based Certificates-based Other
States with Labeling and Disclosure Rules. Full DisclosureFull Disclosure Partial DisclosurePartial Disclosure ProposedProposed
WRAP Policy: Renewable Energy Certificates “Some policies are more effective if implemented on a regional scale. States, tribes and regional energy organizations should act in concert to: establish a regional institution for issuing and trading renewable energy certificates; institute a regional generation tracking system…..” (WRAP Policy: Renewable Energy and Energy Efficiency as Pollution Prevention Strategies for Regional Haze; pg. 2; April 24, 2003)
WRAP Management Directive: Renewable Energy Certificates “Assist the efforts of Western states and tribes to establish a single institution in the WRAP region that will register, certify, issue, track and oversee trading of renewable energy certificates in the west.” (WRAP Policy: Renewable Energy and Energy Efficiency as Pollution Prevention Strategies for Regional Haze; pg. 3; April 24, 2003)
WGA RECs Resolution Western Governors support : Creation of an independent, regional generation tracking system to support verification, tracking and trading of RECs. Establishment of a single institution in the West that will issue, track and oversee REC trading, Development of a standard set of market design and operating guidelines for trading RECs within the Western Interconnection, and
WGA Management Directive Western Governors direct WGA to seek funding and convene a regional meeting of stakeholders to define an institutional structure, design operating guidelines and identify information needed to establish a market for trading of RECs in the western interconnected system.” “ Western Governors direct WGA to seek funding and convene a regional meeting of stakeholders to define an institutional structure, design operating guidelines and identify information needed to establish a market for trading of RECs in the western interconnected system.”
CEC Renewable’s Committee Directive “The Committee recommends that Energy Commission staff work with the WGA to develop a regional electronic accounting system…for RECs”
WGA/CEC RECs Project Goals 1. Create an independent, regional generation tracking system (WREGIS) to support accounting, verification, tracking and trading of RECs. 2. Develop of a standard market design and operating guidelines for tracking and trading RECs within the Western Interconnection, and 3. Establish of a single institution in the West that will track renewable energy generation, and issue, register and track RECs.
Project Team Western Governors Association staff CEC staff Center for Resource Solutions (tech consultant) Stakeholder Committees: Executive Needs Assessment System Design and Functional Requirements Institutional and Governance Issues
Stakeholder Participation Renewable Energy Tracking and Certificates Work Group (RETAC) formed to explore needs, design system architecture and recommend institutional structure for WREGIS. Tribal and state utility and environmental regulators Electric utilities Renewable energy developers Environmental advocates Marketers and brokers WRAP IOC members State energy agencies
Current Activities Website development Preparation of work plan Needs Assessment Committee Conduct Needs Assessment Survey (Aug-Sept) Draft report on WREGIS Needs Assessment (Oct.) Conduct regional stakeholder meetings (Oct-Nov) Final Report issued (Nov-Dec)
Executive Committee Develop work plans and budgets Strategic oversight over implementation of WREGIS process Establish Committees for special tasks Communicate activities & progress to interested stakeholders. Facilitate regional stakeholder meetings
System Design and Requirements Committee Prepare functional requirements Coordinate state interface software requirements RFP for tracking software and system operation Issue RFP March 2004 Select Contractor April 2004 Software and systems development June – December 2004
Institutional Committee Legal requirements needed to establish WREGIS Institutional home How will WREGIS be governed Operating Rules and Guidelines Institutional Issues Report January 2004
WGA/CEC Project Goal…. WREGIS operational by January 2005