Renewable Energy Credits (REC) Market Dynamics & Trading
June 12-13, 2017
Boston, MA

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Overview

Renewable energy credits (RECs) are one of a growing number of environmental commodities that are an essential, but often overlooked, component of all renewable energy developments and financial transactions. Most utilities, project developers, and capital sources understand the principle that a REC is created for each megawatt-hour of renewable electricity generated and delivered to the power grid, representing the legal rights to the environmental benefits associated with this power production.  Companies that cannot directly invest in solar panels or wind turbines may purchase RECs and can benefit from the flexibility that RECs provide them.  However, it is often difficult to understand and fully value the multiple ways that RECs can be sold, bartered or traded as a commodity to their benefit.

This symposium provides a unique opportunity to learn the fundamentals of RECs and their relationship to renewable portfolio (RPS) mandates, while also advancing an organizational “game plan” for business strategy and successful compliance.   It will describe the nuances of U.S. REC markets, devoting most attention to the growing and dynamic northeastern U.S. market, analyzing key financial and contractual considerations for RECs and exploring how emerging policies will impact the future of REC markets. The training will showcase how properly addressing RECs in a renewable energy project development transaction can make a significant difference in that project’s bankability and profitability.  There will be a discussion on typical processes for REC verification, certification, system administration, and appropriate financial structuring to achieve their optimum transactional value.  And state government regulatory staff charged with administering the New England REC market will discuss tips for REC compliance, as well as evaluate impacts of new and evolving regional policies on state RPS and REC markets. Attendees will come away with a current and in-depth understanding of REC market forces, dynamics and trading instruments, as well as benefit from an interactive “REC trading” exercise to gain hands-on experience in the commodity marketplace. 

Learning Outcomes

  • Evaluate Renewable energy credit (REC) markets on a national, regional and state perspective
  • Discuss fundamentals of registering, selling, settling and tracking RECs
  • Describe the New England REC market and New England sates covered with RPS programs
  • Examine REC market dynamics, transaction and trading fundamentals
    • Solar renewable energy credit (SREC) markets
  • Review best practices for managing REC tracking systems and functional activities on the administrative level
  • Analyze historical REC pricing information, market liquidity, and causes for market fluctuations
  • Discuss best practices for REC compliance in New England markets for state RPS goals
  • Evaluate potential impacts to REC markets from changing regulation and policy
  • Identify types of transactions, contract options and processes to piece together a successful financial package
  • Assess new and innovative ways to trade and monetize RECs, such as an upcoming spot market in NEPOOL and PJM

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.0 CEUs for this event.

 

Requirements For Successful Completion Of Program

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations, interactive dialogue and instructor/panel discussions will be used to present the material.

Agenda

Monday, June 12, 2017

7:30 – 8:00 a.m. :: Registration and Continental Breakfast


8:00 – 9:30 a.m. :: Introduction to Renewable Energy Credit Markets 

  • Background and history of renewable energy credits (RECS)
  • Structure of RECs from a legal and regulatory standpoint
    • Renewable portfolio standard (RPS) programs
    • National perspective
    • Regional perspective
  • Compare and contrast regional markets
    • State perspective
  • How are RECs created?
  • How are RECs transferred?
  • REC procurement and sale
  • Regulatory/legislative issues
  • New England Renewable Energy Credits (RECs) overview
    • Economic impact
    • Environmental impacts of energy and carbon on wholesale electric markets
    • Low and zero emissions renewable energy credit (LREC/ZREC) programs
  • States covered in New England with RPS programs
    • Maine
    • Massachusetts
    • New Hampshire
    • Vermont
    • Rhode Island
    • Connecticut

Christie Bradway, Manager – Renewable Power Contracts, Eversource Energy

Terri Murray, Environmental Markets Specialist, Capital Power Corporation

9:30 – 9:45 a.m. :: Morning Break


9:45 – 11:45 a.m. :: State Panel: Regulation, Compliance and Policy in NEPOOL GIS

The New England Power Pool Generation Information System (NEPOOL GIS) issues and tracks REC certificates for all MWh of generation and load produced in the ISO New England control area, as well as imported MWh from adjacent control areas. This session will feature presentations from state regulatory staff involved in NEPOOL GIS re: the history of their states’ renewable portfolio standard (RPS), discussing how RPS works in their states, qualifying resources, and an overview of the application, tracking, and certification management processes.   Speakers will then participate in a panel discussion to discuss regional nuances of New England REC markets, tips for compliance, and evaluate the impacts of new and evolving policies on state RPS and REC markets.

Moderator:

Ruth Silman, Boston Office Managing Partner, Nixon Peabody LLP

Panelists

Michael Judge, Director –  Renewable and Alternative Energy Division, Massachusetts Department of Energy Resources

Karen Cramton, Director –  Sustainable Energy Division, New Hampshire Public Utilities Commission

Teddi Ezzo, Utilities Examiner – Bureau of Energy Technology, Connecticut Department of Energy and Environmental Protection 

Christopher Kearns, Chief – Program Development, Rhode Island Office of Energy Resources

11:45 a.m. – 12:45 p.m. :: Group Luncheon


12:45 – 1:45 p.m. :: National REC Registries & Administrative Aspects of Operation

  • Overview of RECs regional markets and North American REC Tracking Systems, or Registries
      • Texas Renewable Energy Credit Program
      • PJM- Generation Attribute Tracking System
      • Western Renewable Energy Generation Information System (WREGIS)
      • Midwest Renewable Energy Tracking System (M-RETS)
      • North American Renewables Registry (NAR)
      • Michigan Renewable Energy Certification System (MIRECS)
      • Nevada Tracks Renewable Energy Credits (NVTREC)
      • North Carolina Renewable Energy Tracking System (NC-RETS)
      • New England (NEPOOL GIS) )
  • Review how different registries operate
  • Tips for programmatic day to day, administration and operation
  • Compare and contrast regional markets: key differences
  • Midwestern RECs: understanding the opaque market and evaluating future opportunities

Benjamin L Gerber, Executive Director, Midwest Renewable Energy Tracking System (M-RETs)


1:45 – 3:15 p.m. :: Renewable Energy Credit (REC) Market Dynamics

  • REC market forces and dynamics
    • Supply/demand fundamentals
  • REC statistics by technologies
  • REC statistics by state
  • Multi-state qualification
  • Identify number of RECs needed per state to meet mandates
  • Solar renewable energy credits (SRECs)
  • Carve-outs, set-asides and other focusing instruments
  • Describe a summary of oversupply/undersupply in the market
  • Identify the function of alternative compliance payment mechanism
  • Analyzing historical REC pricing dynamics
    • Regional pricing correlations, shifts, and their causes
    • Impacts of new builds, changing imports/exports, and new policies on the market

Erin Eckenrod, Head of Environmental Products, EDF Trading North America

Terri Murray, Environmental Markets Specialist, Capital Power Corp

3:15 – 3:30 p.m. :: Afternoon Break


3:30 – 5:00 p.m. :: Renewable Energy Credit (REC) Transactions & Trading Fundamentals

  • Identify REC market players (buyers, sellers, brokers, traders)
  • Technicalities of a REC transaction process
    • Successful transaction mechanisms
    • Trade execution
  • Structured transactions
  • Work day in the life of a REC market participant
    • Trading RECs in voluntary and compliance markets
    • Volume of RECs
    • Value of transactions
    • Types of transactions

Christie Bradway, Manager – Renewable Power Contracts, Eversource Energy

Jennifer Butt, Commodities Broker – Environmental Products, Marex Spectron

Patrick McFadden, Environmental Products Broker, Marex Spectron


Tuesday, June 13, 2017

7:30 – 8:00 a.m. :: Continental Breakfast


8:00 – 10:00 a.m. :: REC Project Finance & Contract Options

  • Piecing together a financial package for RECs
  • Project finance through REC transactions
    • Selling long-term REC obligations
    • Hedging forward REC compliance needs
  • Debt and equity
    • Contracts to sell RECs
    • Different types of REC contracts
    • Structuring long-term REC contracts
    • REC contract implications on financing
  • Contract/transaction case study
    • Kearsarge Energy

Andrew Bernstein, Managing Partner, Kearsarge Energy

James Duffy, Partner, Nixon Peabody LLP

Brian Morrissey, Managing Director, Citizens Energy Corp

Tony Grappone, Partner, Novogradac & Company LLC

10:00 – 10:15 a.m. :: Morning Break


10:15 – 11:15 a.m. :: Mock REC Trading Exercise

  • Role-play as a REC market buyer (seller, buyer, trader)
  • Market dynamic exercises with mock injections of market forces
  • Practice buying, selling and trading

Patrick McFadden, Environmental Products Broker, Marex Spectron

Jennifer Butt, Commodities Broker – Environmental Products, Marex Spectron


11:15 – 11:45 a.m. :: New and Innovative Ways to Trade and Monetize RECs

In some instances, project developers will want to sell their RECs after a transaction as quickly as possible.  More such quick turnaround transactions can help secure a good REC price in volatile markets, and help overcome the costly transaction requirements for upfront capital and credit.  A new initiative is seeking to fill this market niche in US REC markets, by launching a REC ‘spot trading’ platform that would facilitate inter-day REC trading.  This session will evaluate how a REC spot trading platform could change the market and bring new opportunities for REC market participants.  It will focus on NEPOOL and PJM, two markets where the platform is planning to launch.

Scott Hernandez, Vice President – North America, CBL Markets

11:45 a.m. :: Symposium Concludes

Speakers

Andrew Bernstein, Managing Partner, Kearsarge Energy

Christie Bradway, Manager – Renewable Power Contracts, Eversource Energy

Jennifer Butt, Commodities Broker – Environmental Products, Marex Spectron

Karen Cramton, Director –  Sustainable Energy Division, New Hampshire Public Utilities Commission

James Duffy, Partner, Nixon Peabody LLP

Erin Eckenrod, Head of Environmental Products, EDF Trading North America

Teddi Ezzo, Utilities Examiner – Bureau of Energy Technology, Connecticut Department of Energy and Environmental Protection

Benjamin L Gerber, Executive Director, Midwest Renewable Energy Tracking System (M-RETs)

Tony Grappone, Partner, Novogradac & Company LLC

Scott Hernandez, Vice President – North America, CBL Markets

Michael Judge, Director –  Renewable and Alternative Energy Division, Massachusetts Department of Energy Resources

Christopher Kearns, Chief – Program Development, Rhode Island Office of Energy Resources

Patrick McFadden, Environmental Products Broker, Marex Spectron

 

Brian Morrissey, Managing Director, Citizens Energy Corp

Terri Murray, Environmental Markets Specialist, Capital Power Corp

Ruth Silman, Boston Office Managing Partner, Nixon Peabody LLP

Location

Nixon Peabody LLP
100 Summer St.
25th floor in the Pokross Room
Boston, MA 02110

Nearby Hotels

Hyatt Regency Boston
One Avenue De Lafayette, Boston, MA, 02111
(617) 912-1234
0.2 miles from office

The Godfrey Hotel Boston
505 Washington Street, Boston, MA, 02111
(617) 804-2000
0.2 miles from office

InterContinental Boston
510 Atlantic Ave, Boston, MA, 02210
(617) 747-1000
0.3 miles from office

Harborside Inn Of Boston
185 State St, Boston, MA, 02109
(617) 723-7500
0.4 miles from office

 

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