Renewable Energy Credit (REC) Program

ERCOT Retail 101

Discussion Topics

• Definition and Overview

• Types of Renewable Energy

• Rules and Responsibilities

• ERCOT Renewables Website

Texas Definition Of Renewable

Renewable energy technology is any technology that: • Exclusively relies on an energy source that is

naturally regenerated over a short time• Derived directly from the sun, indirectly from the

sun • Derived from moving water • Derived from natural movements and mechanisms of

the environment.

Texas Definition Of Renewable

Renewable Energy Technology does not rely on:

• Energy resources derived from fossil fuels

• Waste products from fossil fuels

• Waste products from inorganic sources.

Examples Of Renewables

Renewable Energy Sources are:

• Wind Generators

• Solar Panels

• Landfill Gas Capture/Utilization Devices

• Tidal Flow Energy Capture Devices

• Flowing Water Energy Capture Devices

• Dams

• Geothermal Energy Capture Devices

• 1 MWh renewable energy = 1 REC

• Each REC is good for three compliance periods (two full years and the partial year in which it was created)

What is a REC?

• Affects Competitive Retail Electric Providers & Renewable Generators (MOU/EC)

• Texas-wide (includes non-ERCOT areas)

• Requires Competitive Retailers to submit RECs annually for Compliance

REC Program Overview

REC Program Purpose

• Encourage construction and production of renewable energy

• Promote the use of renewable energy • Satisfy the State of Texas renewable energy requirements • August 1, 2005 Senate Bill 20 passed, extending the

renewable energy requirements to January 1, 2025 with a target of 10,000 MWs

New Capacity Ratchets

YearMW Cumulative New Renewable Capacity

2003 1280

2005 1730

2007 2280

2009 3272

2011 4264

2013 5256

2015 5880

2025 10,000

• REC Program: – Annual REC Compliance Requirement for

CRs– CRs are required to submit RECs annually in

proportion to retail load served in TX

• PUC Labeling Initiative: – RECs can be used for verification of

advertising claims for green power

REC Uses

REC Offsets

• A REC offset represents one MWh of renewable energy from an Existing Facility that may be used in place of a REC to meet a renewable energy requirement.

• Existing Facilities are Renewable Energy Generators placed in service before September 1, 1999.

• Offsets used to reduce the mandated retirement of RECs for Competitive Retailers

REC Offsets

• To qualify for REC offsets in the REC Program, a Retail Electric Provider, Must have applied for REC OFFSETS to the PUCT by June 1, 2001

• REC OFFSETS are not tradable

• Valid until PUCT revokes/cancels the awarded offsets or until the generator ceases to generate electricity

REC Offsets & Generation & Transmission Cooperatives

• G&T Cooperatives may:– Be responsible for the cumulative total of Offsets

and their distribution and/or redistribution– Assign/Distribute Offsets to affiliate cooperative

members for use when those members Opt-In to the Competitive Retail Market

– May redistribute Offsets as additional members Opt-In

• PUC appointed ERCOT as REC Program Administrator in May 2000

– Register Program Participants

– Create REC accounts

– Track MWh of renewable energy generated

– Create unique REC IDs for each MWh

– Distribute RECs to generators, quarterly

– Determine annual REC Allocation for Competitive Providers

– Retire RECs submitted for compliance

ERCOT Responsibilities

ERCOT Responsibilities

• Retire REC’s as they expire• Maintain public information website

– Provide monthly report of MWH load in Texas– Provide list of REC account holders with contact information– Provide list of Facility ID Numbers, and associated

information– Provide reports to the PUCT – Compliance– Verify that Competitive Retailers meet REC

compliance requirements

• Apply to PUCT for certification as a REC generator

• Apply to ERCOT for REC account

• If not an ERCOT polled generator then the generator must enter monthly generation data in the ERCOT Web Site

MP Responsibilities: Generators

MP Responsibilities: Generators

• Generate & Sell Energy – Separate Energy from Credits– Two revenue streams for generators

• Receive and Sell RECs

• Competitive Retail Electric Providers

– Apply to ERCOT for REC account after certification

– Obtain annual REC Compliance Requirement from ERCOT by January 31st

– Submit REC Compliance numbers to ERCOT by March 31st

– If load is not ERCOT polled, then CR must enter load data in ERCOT Web Site

MP Responsibilities: CRs and Others

MP Responsibilities: CRs and Others

• Other Entities

– No Restrictions on Participation

– Apply to ERCOT for REC account

• All data available online for 3 years

• No limits on REC Account Applications

• All Activities Available Online

– Account Registration

– Trading

• Secure Portal for REC Account Holders

– Enable Account Activities: View, sort, batch, or singly identify RECs to Transfer or Retire

ERCOT REC Website

Where is REC Website?

Go to the ERCOT Website – www.ercot.com– Select View Other ERCOT Websites– Select Renewable Energy Credits Program-

Texasrenewables.com– Select Login (New Users will need to register.)

Some features do not require a login

Login

Register

ERCOT Renewables Program Home Page View

New Account Registration Form

Select Competitive Retailers

List of participating

CR/REP Contact info

Summary

• REC Program is Mandated by the PUCT and administered by ERCOT

• All CR/REPs serving load must participate

• All CR/REPs are responsible for their reported load

• Everything can be done from the ERCOT Renewables website

Questions?

ERCOT Challenge

Which of the following is not a renewable energy source?

a. Solar Panels

b. Dams

c. Flowing Water Energy Capture Devices

d. Wind Generators

e. Resources derived from fossil fuels

Answer - E