Renewable Portfolio Standards:
       Solar RECs –
    A Monetary Incentive

                    Michael Lee
         Mary...
What is a Renewable Portfolio Standard?
Renewable Portfolio Standard (RPS):
•A requirement on retail electric suppliers…
•...
Mid-Atlantic States’
      Renewable Portfolio Standards:
            a relatively new policy mechanism
  – New Jersey: be...
2008-2009 RPS:4 new states, 13 state
   revisions




                                                4
Source: Lawrence B...
State RPS Policies:
              29 States: Policies, 5 States: Non-binding Goals




                                   ...
Source: Lawrence Berkeley National Laboratory   6
Mid-Atlantic States’
                    Solar Tiers

  –   New Jersey
  –   Maryland
  –   Pennsylvania
  –   District of...
Mid-Atlantic States’
                    Solar Tiers

• PJM Interconnection

   •New Jersey
   •Maryland
   •Pennsylvania
...
PJM: The Region’s Wholesale Bulk Power Market


• PJM Interconnection




PJM Interconnection is a regional transmission o...
PJM – EIS
  Generation Attribute Tracking System
• GATS - a regional environmental registry and information system that
  ...
Generation Attribute Tracking
           System (GATS)
• Publicly available bulletin board where account holders can
  pos...
Solar Facilities Registered in GATS

• 4,306 solar facilities registered and
  qualified in PA, DE, MD, DC, and NJ
• Total...
Solar Generators Registered in PJM
             GATS by State
•   DC - 5                    •   NC – 2
•   DE – 381       ...
SRECs Issued in States
              (Nov. 2009)

         DE                        798

         MD                     ...
SREC Newsletter
    November Auction Clearing Prices
•   District of Columbia              $313
•   Delaware              ...
Mid-Atlantic
                       Market Comparisons
       Alternative Compliance                           Solar Weigh...
17
Sources: PJM-EIS
GATS Solar REC
    Auction Platform Launch Date:
         Spring 2010 (“Envisioned”)
• Purpose hold monthly auctions
• Cle...
PJM: Who wants this monthly
       auction for solar RECs?
• Small Resource Owners & Aggregators (requested)
   – “Now, ho...
Source Information:
• Database of State Incentives for Renewable
  Energy (DSIRE)
• Lawrence Berkeley National Laboratory
...
Questions?
        Now:                       Later:

       Michael Lee                 Jerry Hughes
       Director, IRP...
22
23
Source: Lawrence Berkeley National Laboratory
Upcoming SlideShare
Loading in …5
×

Renewable Portfolio Standards: Solar RECs – A Monetary Incentive

1,835 views

Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

Renewable Portfolio Standards: Solar RECs – A Monetary Incentive

  1. 1. Renewable Portfolio Standards: Solar RECs – A Monetary Incentive Michael Lee Maryland Public Service Commission Maryland, DC, Virginia - Solar Energy Industries Association Solar Energy Focus Conference: Fall 2009 December 3-5, 2009 1
  2. 2. What is a Renewable Portfolio Standard? Renewable Portfolio Standard (RPS): •A requirement on retail electric suppliers… •To supply a minimum percentage or amount of their retail load… •With eligible sources of renewable energy (e.g., solar) Typically backed with penalties of some form Often accompanied by a tradable renewable energy credit (REC) program to facilitate compliance Never designed the same in any two states (e.g., penalties vary) Source: Lawrence Berkeley National Laboratory 2
  3. 3. Mid-Atlantic States’ Renewable Portfolio Standards: a relatively new policy mechanism – New Jersey: began in 2004 – Maryland: requirements in effect in 2006 – Pennsylvania: requirements in effect in 2007 – District of Columbia: requirements in effect in 2007 – Delaware: requirements in effect in 2007 – Virginia: enacted a voluntary goal in 2007 Source: PJM-EIS, Database of State Incentives for Renewable Energy (DSIRE) 3
  4. 4. 2008-2009 RPS:4 new states, 13 state revisions 4 Source: Lawrence Berkeley National Laboratory
  5. 5. State RPS Policies: 29 States: Policies, 5 States: Non-binding Goals 5 Source: Lawrence Berkeley National Laboratory
  6. 6. Source: Lawrence Berkeley National Laboratory 6
  7. 7. Mid-Atlantic States’ Solar Tiers – New Jersey – Maryland – Pennsylvania – District of Columbia – Delaware Source: DSIRE 7
  8. 8. Mid-Atlantic States’ Solar Tiers • PJM Interconnection •New Jersey •Maryland •Pennsylvania •District of Columbia •Delaware Source: DSIRE 8
  9. 9. PJM: The Region’s Wholesale Bulk Power Market • PJM Interconnection PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. 9
  10. 10. PJM – EIS Generation Attribute Tracking System • GATS - a regional environmental registry and information system that will track the environmental and fuel attributes of generation. • The system will: • assist LSEs in their compliance with applicable emissions and fuel disclosure requirements and with state-level Renewable Portfolio Standard (RPS) regulation or renewable policy • enable voluntary bilateral markets and marketing claims for renewables. • provide state agencies with reporting and verification • provide renewable generators with a means to monetize their renewable attributes and qualification Source: PJM-EIS 10
  11. 11. Generation Attribute Tracking System (GATS) • Publicly available bulletin board where account holders can post REC’s that are available for sale • In April 2009, the bulletin board report was enhanced to allow sellers to include a Requested Price for REC’s • Suppliers can contact parties with state-eligible SRECs for sale • In early 2010, PJM-EIS expects to have enhancements in place to allow buyers to post the quantity and price of RECs they would like to acquire. 11
  12. 12. Solar Facilities Registered in GATS • 4,306 solar facilities registered and qualified in PA, DE, MD, DC, and NJ • Total nameplate capability of 103,216.21 kW • 41,177 Solar RECs created in GATS since 2005 (As of September 11, 2009) Source: PJM-EIS 12
  13. 13. Solar Generators Registered in PJM GATS by State • DC - 5 • NC – 2 • DE – 381 • NJ – 3,606 • IL – 2 • PA – 100 • KY – 1 • VA – 15 • MD – 171 • WV - 1 • MN - 1 Source: PJM-EIS, September 2009 13
  14. 14. SRECs Issued in States (Nov. 2009) DE 798 MD 216 NJ 6,192 PA 402 14 Source: PJM-EIS, December 2009.
  15. 15. SREC Newsletter November Auction Clearing Prices • District of Columbia $313 • Delaware $200 • Maryland $360 • New Jersey $660 • Pennsylvania $290 Source: SRECTrade, December SREC Newsletter 15
  16. 16. Mid-Atlantic Market Comparisons Alternative Compliance Solar Weighted Average Penalty Price (12/08-12/09) • NJ: $711/MWh (08/09) • NJ: $385-$649 (49,042) • MD: $400/MWh (09) • MD: $297 - $415 (2,367) • DC: $500/MWh (09) • DC: N/A • PA: 200% ave. mkt value • PA: $225-$357 (2,074) for RECs sold in PJM All: $310 - $591 • DE: $250, $300, $350, • DE: $232-$358 (4,763) respective shortfall • VA: $415-$430 (83) Source: PJM-EIS, December 2009. 16 Note: (trades), certain months without data for certain states
  17. 17. 17 Sources: PJM-EIS
  18. 18. GATS Solar REC Auction Platform Launch Date: Spring 2010 (“Envisioned”) • Purpose hold monthly auctions • Clear Solar REC bid and offers in all states simultaneously, with a single market clearing price calculated for each state • PJM Interconnection, LLC will launch a new subsidiary to own and administer the proposed Solar REC auction platform. 18
  19. 19. PJM: Who wants this monthly auction for solar RECs? • Small Resource Owners & Aggregators (requested) – “Now, how do I sell my RECs?” – Cost-effective way to maximize value of RECs • Load Servers (supported) – Reduces administrative cost of RPS compliance • State Agencies (supported) – Reduce cost of RPS compliance – Provides price transparency – Reduces the use of Alternative Compliance Payments as a means of RPS compliance – Supports the development of distributed resources Source: PJM-GATS Subscribers Group 19
  20. 20. Source Information: • Database of State Incentives for Renewable Energy (DSIRE) • Lawrence Berkeley National Laboratory – Renewable Portfolio Standards: A Factual Introduction to Experience from the United States, Wiser et al. – State of the States: Update on RPS Policies and Progress, Wiser & Barbos • PJM-Environmental Information System 20
  21. 21. Questions? Now: Later: Michael Lee Jerry Hughes Director, IRP Chief Engineer Maryland Maryland Public Service Commission Public Service Commission MLee@psc.state.md.us JTHughes@psc.state.md.us 410-767-8242 410-767-8069 21
  22. 22. 22
  23. 23. 23 Source: Lawrence Berkeley National Laboratory

×