Renewable Energy Certificates & Green Power Certification. Dr. Jan Hamrin Center for Resource Solutions San Francisco, CA

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1 Renewable Energy Certificates & Green Power Certification Dr. Jan Hamrin Center for Resource Solutions San Francisco, CA

2 The Same by Any Other Name Tradable Renewable Energy Certificates Renewable Certificates Renewable Credits Green Tickets Green Tags T-RECS TRCS RECS (EU Specific Product)

3 Renewable Certificates Definition The bundle of attributes, except the actual electrical energy, associated with the generation of electricity from a renewable energy facility

4 TRCS Production of Renewable Energy TRC Commodity Electricity TRC represents all of the environmental and other non-electricity benefits of a unit of renewable electricity

5 Why Care? Electric Energy Price limited by local market Geographic market limited TRCS No geographic limits to market Can market where demand is better

6 Benefits of TRCS Facilitates renewable energy trading Breaks down geographic boundaries Creates fluidity in markets Directs dollars to lowest cost renewable resources Can be used as a financing mechanism for new renewable energy facilities

7 TRCS Benefits (cont.) Market mechanism stimulates competition and boosts cost reduction Lower price for customers due to: international competition and non-existence of transport costs 14

8 TRCS Benefits (cont.) Makes available all types of renewables Makes customised portfolio mixes of renewables possible TRCS can exist parallel to other support schemes 18

9 Status of TRCS Market Just developing Wholesale EU Market Retail US Market

10 Background and History TRCs have been used on wholesale level for green power purchases At wholesale level, TRCs are a financial mechanism to facilitate purchase of renewable electricity

11 What s New? TRCs now being sold at retail, with and without accompanying electricity TRCs are being sold outside of geographic confines of the power pool without wheeling electricity Renewables are available to more consumers in more geographic areas Renewables available for uses outside the electricity sector e.g. emissions trading

12 Standard Product Types Percentage Products e.g., 100%, 50%, etc., payment: 2 cents/kwh premium Block Products e.g., 100 kwh/month new wind power payment: $3/month for each block

13 Who is Buying TRCS? Utilities to Satisfy RPS Utilities for Green Pricing Programs Competitive Green Power Marketers Residential and Commercial Customers Event Coordinators

14 Who is Selling T-RECs? Sterling Planet Bonneville Envir. Foundation Waverly Light and Power Automated Power Exchange PG&E's Nat l Energy Group ww.purewind.net Environmental Resources Trust Navitas Natsource LLC

15 Consumer Protection Concerns Double counting & double selling Location of emissions benefits Marketing claims Date of generation & banking Property rights

16 Consumer Protection Concerns Verification and tracking No clear regulatory jurisdiction over tags Specific disclosure, state laws Lack of Consumer sophistication

17 Preliminary Rules TRCs come into existence at the moment of electrical output from the RE facility Owned by owner of facility until transferred May be transferred by contract or other legal means

18 Green-e TRC Product Standards Only new renewables: Domestic, fully aggregated, grid-connected No mandated or RPS renewables allowed Regulators must be notified of TRC transaction when utility is involved Disclosure Annual verification

19 Disclosure RENEWABLE CERTIFICATE LABEL This is a renewable certificate product. For every unit of renewable electricity generated, an equivalent amount of renewable certificates is produced. The purchase of renewable certificates supports renewable electricity generation, which can help offset conventional electricity generation in the region where the renewable generator is located. This does not represent a sale of electricity delivered to you. This product matches X% of your estimated electricity usage. The product will be made up of the following new renewable resources averaged annually. [use alternate language below for fixed size blocks and historic disclosure] New 1 Renewable Resources in [PRODUCT NAME] Generation Location Biomass X % Geothermal X % Low Impact Hydro X % Solar X % Wind X % 1 Includes renewable generators that first started operating after January 1, 1999 or as regionally defined. For comparison, the current average mix of energy sources supplying the US includes: Coal (52%), Nuclear (18%), Oil (2%), Natural Gas (8%), Large Hydroelectric (10%), Other Fossil (8%), and Renewables (2%). (from USEPA E- GRID) For specific information about this product, contact [Company Name], [phone], [website]. This product is certified by the Green-e Program. For more information call GREEN or visit Semi annual disclosure Accompanied by some short explanatory language Guidance format, can be modified with pre-approval Only renewable resources in the product will be listed Geographic location identified by region or state For both fixed blocks and % of use blocks

20 TRCS Needs Need a consistent accounting and reporting system Prohibit Double and Partial Double Sale Keep attributes bundled Some Double Use should be allowed

21 TRCS & Emission Trading TRCS can be converted into parts (e.g. CO2, SOx, NOx, Mercury, etc.) and sold separately but Must be kept bundled for sales to retail customers or to EU

22 TRCS Resources Center for Resource Solutions website: RECS.html Business for Social Responsibility Green Tags report Regulatory Assistance Project s Green Power Newsletter #8 (July 2001) National Wind Coordinating Committee:

23 Green Power Certification

24 What Is Green Power Certification? A tool to help consumers select renewable electricity products that meet environmental and consumer protection standards

25 Green Power Certification Promotes Consumer Confidence Boosts Deployment of Renewables Provides Information & Communication

26 Green Power Certification Educates consumers about renewable power and electric choice Shapes the Market Helps Keep the Market Honest

27 Green Power Certification Ensures people get what they pay for if they buy certified green electricity Create incentives for investment in new renewable generation

28 What Does Certification Do? Sets minimum criteria for renewable electricity sold in retail markets Sets consumer protection criteria for renewable power Conducts an annual verification Conducts renewable education campaign

29 Contact Information Meredith Wingate International Program Manager