Renewable Energy Certificates (RECs)
Twenty-nine states plus the District of Colombia have established Renewable Portfolio Standards (RPS) that mandate electric utilities serving retail customers in their state to provide a percentage of their electricity sales from renewable energy. While definitions and requirements vary from state to state, most standards include wind, solar, low-impact hydro, landfill gas, biomass and geothermal generation. Utilities may meet these annual obligations through generation from their own renewable plants or from purchases from other providers with renewable generation. In either case, utilities must provide RECs as verification of meeting the mandate. RECs represent the “green” environmental benefits, or attributes, of renewable energy, where one REC equals one MegaWatt-hour of renewable energy. RECs may be acquired separately from the electricity, which is typically the case.
Green Harbor Energy helps owners and operators of renewable generation qualify their plants to meet RPS requirements, certify the plant’s production to create state-approved RECs, and market RECs to buyers in the marketplace.
Energy Efficiency Certificates (EECs)
Four states with an RPS require electric utilities serving retail customers in their state to provide a percentage of their electricity sales from energy efficiency savings. All states with this requirement allow savings from Combined Heat and Power (CHP) systems, while some allow savings from energy conservation measures. As with renewable energy, utilities must provide certificates, in this case EECs, as verification of meeting the annual mandate. Likewise, EECs represent the “green” environmental benefits, or attributes, of energy efficiency savings. However, in the case of CHP systems in some states, unlike RECs, one EEC can equal the combined energy savings of both electricity and thermal production.
Green Harbor Energy helps owners and operators of energy efficiency projects qualify their projects to meet RPS requirements, measure and verify energy savings, certify the savings to create state-approved EECs, and market EECs to buyers in the marketplace.
In addition to RECs and EECs, there are numerous other environmental credits that provide financial incentives to make investments in technology or operational changes to reduce emissions. Most notably of these credits are: Emission Reduction Credits (ERC), which are created by emission reductions in EPA designated non-attainment areas, CO2 allowances, which are created by CO2 reductions in accordance with the either the California or the Northeast (Regional Greenhouse Gas Initiative) compliance markets, and Renewable Identification Numbers (RIN), which are created by the development of renewable transportation fuels in accordance with the US EPA.
Green Harbor Energy helps owners and operators of these credit projects qualify their projects to meet requirements, certify the environmental benefits, and market the credits to buyers in the marketplace.