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Navigating Complex REC Markets

Helping Renewable Energy Power Generators Maximize Value

Client: Various companiesWind Energy
Location: New York, New England and beyond

Challenge/Business Need

In a growing number of states, utility companies are required to supply a certain proportion of electricity from renewable or alternative generation (i.e., not fossil fuel based) by a given date. For the 28 states where these “Renewable Electricity Standards” are in place, purchasing Renewable Energy Certificates (RECs) is a common way for companies to comply with the regulation. Companies that produce renewable energy often seek assistance capitalizing on these REC compliance markets to maximize the value of their assets.

CSG’s ROLE

CSG represents clients, providing REC market services and expertise. To achieve the best value for renewable generators, CSG provides an unparalleled breadth and depth of service. This complex market requires:

  • Diligent attention to public policy
  • REC marketing and sales
  • Transaction tracking system account management
  • REC portfolio and contract management

CSG specializes in assisting our clients with achieving their goals through supplying these services. In keeping with its mission, CSG advocates for a transparent tracking mechanism and the highest level of integrity within the marketplace so that these markets will grow as an effective and popular tool for developing a cleaner, more sustainable power supply.


COMMUNITY BENEFITS:

  • Reduced dependence on fossil fuel, increasing energy security
  • Increased investment in clean technologies
  • Significant GHG reductions & cleaner air
  • Clean energy job creation

RESULTS:

  • Millions of dollars in REC sales
  • Replaced source with cleaner generation
  • Providing greater amounts of clean power for lower cost
  • Lower-cost financing and economies of scale that make renewable energy technologies more competitive

Strategy & goals

CSG helps each client with an asset-specific strategy to maximize value in their unique circumstances. Implementation includes:

  • Policy advocacy
  • Asset qualification (of generation units)
  • REC accounting and certification
  • REC sales and contract fulfillment including delivery, invoicing, and collections

CSG identifies partners, and works with state agencies and power system operating entities to resolve regulatory and legal issues (for example, so that qualified out-of-state generators can receive value for their renewable assets).

Impact

CSG played a leadership role proving the viability and value of a market-based system for achieving the important public policy objectives of Renewable Electricity Standards (also known as Renewable Portfolio Standards).

Within two years, the New England market sent a clear price signal to entrepreneurial renewable generators. CSG then initiated precedent-setting milestones for our clients in the Northeast. This included administration of the first successful application for a Qualified New Renewable Generation Unit under the Massachusetts RPS qualification for a generation asset located in New York. Nationwide expansion of these services continues, as additional REC accounting systems are brought online.

CSG Contacts

Patricia Stanton, VP, Clean Energy Markets

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