Introduction to Renewable Energy Certificate Tracking Systems

Originally Aired on May 21, 2014
Renewable energy markets in the U.S. increasingly rely upon tracking systems—regional electronic databases that allow stakeholders to manage their portfolio of renewable energy certificates (RECs) that confer environmental benefits and act as proof of generation. Unsung and largely unknown outside the industry, REC tracking systems in the U.S. are crucial to our functioning marketplace. Join Amy Fredregill, Executive Director of the Midwest Renewable Energy Tracking System (M-RETS), and CRS Senior Project Manager Rachael Terada in an overview of how tracking systems work, what's in a REC, and an inside look at M-RETS.

Transcript

1. View Slide

2. Introduction to
   Renewable Energy Tracking Systems
   May 21, 2014
   Webinar
   Rachael Terada
   Senior Project Manager
   

   View Slide

3. Outline
   1. Tracking System Overview
   2. Renewable Energy Certificates
   3. Attributes Tracked on Certificates
   4. Trading and Retirement
   5. Use of Tracking Systems in the Voluntary
   Market
   

   View Slide

4. Renewable
   energy is
   natural,
   abundant,
   and clean.
   

   View Slide

5. What is Renewable Energy?
   

   View Slide

6. Wind
   Solar
   Geothermal
   Biomass
   Low-Impact Hydro
   not nuclear
   not “clean” coal
   not natural gas
   

   View Slide

7. View Slide

8. Current Uses
   Renewable Portfolio Standards
   Fuel Mix Disclosure
   Voluntary Market
   

   View Slide

9. Source: DSIRE
   Compliance Markets:
   Renewable Portfolio Standards (RPSs)
   

   View Slide

10. renewable
    energy
    certificates
    (RECs)
    

    View Slide

11. View Slide

12. Certificates
    1 MWh generation = 1 certificate
    Unique serial numbers
    Tradable
    

    View Slide

13. Primary Users
    Generating Facilities
    Load Serving Entities (LSEs)
    Marketers
    State Program Administrators
    Voluntary Program Administrators
    

    View Slide

14. Example: GATS Generators
    

    View Slide

15. GIS and GATS
    are
    “all generation”
    tracking systems
    

    View Slide

16. View Slide

17. Tracking RECs
    Primary Attributes
    – Fuel type
    – Vintage
    – Facility Location
    – Direct Emissions
    Derived Attributes
    – Avoided emissions
    • Includes CO2
    

    View Slide

18. Certificates include
    Fuel Source
    Vintage
    Generator Location
    Direct Emissions
    State Program & Green-e Eligibility
    

    View Slide

19. Certificates can be
    Traded
    Retired
    Converted to Residual Mix
    

    View Slide

20. Trading Certificates
    Customer
    

    View Slide

21. Example: GATS REC Retirement Report
    

    View Slide

22. voluntary
    market
    

    View Slide

23. Consumer protection and certification
    for voluntary renewable energy purchases
    

    View Slide

24. Green-e Energy certifies approximately 75% of the
    U.S. voluntary renewable energy market
    

    View Slide

25. Equivalent to powering nearly 1/3 of
    U.S. households for 1 Month
    

    View Slide

26. View Slide

27. Use of Tracking Systems (by MWh)
    Green-e Energy Certified Retail Sales, RY2012
    

    View Slide

28. View Slide

29. View Slide

30. Helpful Resources
    www.etnna.org
    

    View Slide

31. www.renewableenergymarkets.com
    

    View Slide

32. Rachael Terada
    Senior Project Manager
    Center for Resource Solutions
    415-561-2135
    rachael @resource-solutions.org
    CONTACT
    

    View Slide

33. Center for Resource Solutions
    Tracking System Webinar
    Midwest Renewable Energy
    Tracking System, Inc.
    Overview
    Amy Fredregill
    Executive Director
    

    View Slide

34.  Organizational Overview
     Functions and comparisons with peers
     Midwest RPS overview
     Annual stats
     REC tracking scope
     Data sources and certificates
     Stakeholders
     Drivers for registry activity
     Developments on horizon
     Accessing information and getting involved
    34
    Topics to be covered
    

    View Slide

35. Footprint: 9 states and Manitoba
    35
    M-RETS operate primarily
    within the MISO footprint
    

    View Slide

36.  Mission Statement: M-RETS efficiently tracks and verifies renewable
    energy generation in collaboration with stakeholders, facilitating
    renewable energy development in the public interest.
     Nonprofit - independent, not affiliated with an ISO or agency
     Balanced board of directors
     3 staff, APX serves as Administrator
    Organizational Overview
    36
    

    View Slide

37. Key M-RETS Functions
    37
    Verifies production data for
    participating generators
     Generators must register units
     Must report 100% of output
    from registered unit to prevent
    double counting
     No automatic retirements
    based on age
    Only track renewable energy, not all
    generation
    Not tracking emissions and carbon
    at this time
    

    View Slide

38.  In M-RETS, a “Whole
    Certificate” is one where none
    of the renewable attributes
    have been separately sold,
    given, or otherwise transferred
    to another party by a deliberate
    act of the Certificate owner.
    38
    1 MWh Renewable Energy
    = 1 whole Certificate
    

    View Slide

39. M-RETS Roots and History
    39
     First REC tracking began in
    2007
     RPS compliance roots
     Quasi-governmental, initially
    housed at state Commission
     Formed initially to ensure
    states and utilities with
    compliance obligation had a
    tool for RPS compliance
    

    View Slide

40. Policy Driven and Position Neutral
    40
     No advocacy at state legislatures
     M-RETS does not determine eligibility for state or
    voluntary programs
     A generating unit is considered "renewable" if the
    energy generated is considered renewable by
    jurisdiction
     Dynamic software leads to nimble registry - If RPS
    adopted or amended, work with stakeholders to
    determine if changes needed
    

    View Slide

41.  State and provincial governments
     Electric providers (muni, co-op and IOU)
     Environmental Commodities/REC Brokers
     Independent Power Producers or other large
    generators
     Distributed generators or aggregators
     Qualified Reporting Entities (data reporting)
     Nonprofits interested in renewable energy
    Primary Stakeholders
    41
    

    View Slide

42.  ~70% of activity is driven by regulatory compliance
     RPS’s in MN, WI, IL are top drivers
     May also track anything that the voluntary market deems
    “renewable”
     Growth in the voluntary markets
     Offer a bulletin board where buyers and sellers can connect
     Not a trading or clearing system, not tracking REC prices
    42
    Balancing the Needs of Voluntary and
    Mandatory Stakeholders
    

    View Slide

43. 43
    Account Holder Activity
    • 73MM RECs issued in 2013
    • 31MM RECs retired in 2013
    • 207 Accounts Registered
    currently
    • 608 Total Projects currently;
    25% are under 1.5MW
    • 44 New Projects in 2013;
    most are under 1.5MW
    

    View Slide

44. 44
    Data Sources
    

    View Slide

45. 45
    Current RPS, RES, and REO in M-RETS Footprint
    Standards Goals
    Iowa 105 MW
    Illinois 25% by 20125
    Indiana 10% by 2025
    Minnesota
    25% by 2025
    1.5% Solar by 2020
    Montana 15% by 2015
    North Dakota 10% by 2015
    Ohio 12.5% by 2024
    South Dakota 10% by 2015
    Wisconsin ~10 by 2015
    Manitoba none
    

    View Slide

46. Topics on the Horizon
    46
     Distributed generation and
    aggregation trends
     Transfer of RECs between
    regions
     Software enhancements
     Ensure no double counting of
    RECS as other environmental
    attributes are increasingly
    being tracked for compliance
     Backloading/retroactive RECs
    

    View Slide

47. Public reports available at
    M-RETS.org
    47
    

    View Slide

48. For more information, please visit
    mrets.org or contact
    Amy Fredregill, M-RETS Executive Director at
    amy@mrets.org
    Subscriber Group Meeting June 12 1:30 Central
    Conference call info on website
    All stakeholders welcome
    

    View Slide

49.  Discussion and Hot Topics
    49
    Q & A
    

    View Slide

50.  72 projects registered as DG – Solar
     15 Aggregated PV projects comprised of 775 DG PV
    units in M-RETS totaling 6.5 MW of capacity
     832 Solar generators registered individually or in
    aggregate
    50
    How many Solar Aggregation Projects
    are registered in M-RETS?
    

    View Slide

51.  Data must be from control area settlements from a
    revenue quality meter
     For customer-sited distributed generators, the original
    source for reporting total energy production must be from
    revenue-quality metering, adjusted to reflect energy
    delivered into either transmission or distribution grid at
    the generator bus bar. Either:
     Metering at the AC output of an inverter
     In the absence of meter at inverter, measure only hourly
    positive generation flowing to the distribution system
    51
    Meter info and data sources
    

    View Slide

52.  1.5% solar requirement means at least 2250 small solar
    facilities in M-RETS
     Learning from other tracking systems’ approaches to
    registering aggregated DG
     Ideas for enhancements under consideration as we
    communicate with state and wait for any final
    guidance to optimally serve MN regulators and
    Account Holders
     Stakeholder workgroup
    52
    M-RETS Preparation for SES
    

    View Slide

53.  M-RETS Goals:
     Functional & automated export of RECs from M-RETS to all
    compatible tracking systems
     Growing number of REC exports by M-RETS Account Holders–
    almost 1/3 increase from 2011 to 2012
     Functional & automated import of RECs into M-RETS from
    other compatible tracking systems
     Coordinating with other tracking systems
    Import/Export of Renewable Energy Certificates
    Between Registries
    53
    

    View Slide

54. Upcoming Webinar
    

    View Slide

55. View Slide