Renewable Energy Credit (REC) Market Dynamics & Trading
June 19-20, 2018
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 principal 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 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 certification, 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

  • Review the history of Renewable Energy Credit (REC) markets
  • Evaluate REC markets on a national, regional and state perspective
  • Discuss fundamentals of registering, selling, settling and tracking RECs
  • Review best practices for managing REC tracking systems and functional activities on the administrative level
  • Describe active and emerging REC markets from emerging state clean energy legislation
  • Evaluate potential impacts to REC markets from changing regulation and policy
  • Discuss the status and key trends with voluntary REC markets
    • Utility REC/green pricing programs
    • Commercial and residential buyers
    • Verification, certification and purchasing processes
  • Examine REC market dynamics, transaction and trading fundamentals
  • 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
  • Identify types of transactions, contract options and processes to piece together a successful financial package

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 conference to be eligible for continuing education credit.

Instructional Methods

Powerpoint presentations, case studies and a hands-on exercise will be used in program.

Agenda

Tuesday, June 19, 2018

8:00 – 8:30 a.m. :: Registration & Continental Breakfast


8:30 – 10:00 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
  • Overview of different REC markets
  • How are RECs created and transferred?
  • REC procurement and sale
  • 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

Ruth Silman, Boston Office Managing Partner, Nixon Peabody LLP

Christie Bradway, Manager – Renewable Power Contracts, Eversource Energy

10:00 – 10:15 a.m. :: Morning Break


10:15 a.m. – 12:00 p.m. :: Active and Emerging REC Markets, Compliance, & Market Dynamics

  • REC market forces and dynamics
  • REC statistics by technologies and by state
  • Multi-state qualification
  • Identify number of RECs needed per state to meet mandates
  • Carve-outs, set-asides and other focusing instruments
  • Describe a summary of oversupply/undersupply in the market
  • Emerging legislation and their implications for new markets and potential new products
    • Rhode Island
    • New Jersey
    • Vermont
    • Maryland
    • Illinois
    • Massachusetts
    • Southeast REC markets

Moderator:

Scott Eidson, Vice President -Environmental Markets, 3Degrees

Panelists:

Adam Amann, Environmental Products Specialist, Capital Power Corporation

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

Randy Richard, Environmental Trader – Commodity Portfolio Management, Capital Power Corporation

Michael Judge, Director, Renewable and Alternative Energy Division, Massachusetts Department of Energy Resources (invited)

12:00 – 1:00 p.m. :: Group Luncheon


1:00 – 2:00 p.m. :: National REC Registries & Administrative Aspects of Operation

  • Overview of RECs regional markets and North American REC Tracking System
  • 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 market and evaluating future opportunities

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


2:00 – 3:15 p.m. :: Voluntary Renewable Energy Credit (REC) & Green Power Markets

  • Background, status and trends
  • Voluntary REC market buyers and players
    • Corporations and large organizations
    • Residential consumers
  • Product types
    • Selling in regulated and retail markets
    • Needs and considerations for existing programs
  • System administration for voluntary RECs
  • C&I REC market and purchase process
    • Tracking systems
  • Technicalities of key processes in the voluntary REC market
    • Typical processes and interactions
    • Certification and eligibility
    • Purchase process for commercial/residential
    • Bundled RECs in power purchase agreements
      • Certifying long-term contracts
      • Direct certification

Kirsten Ho, Analyst, Certification Programs, Center for Resource Solutions (CRS)

Gates Sanford, REC & Offset Trader, 3Degrees

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

Patrick McFadden, Environmental Products Broker, Marex Spectron

Jack Velasquez, Senior Vice President-Environmental Markets, Marex Spectron

Jennifer Butt, Environmental Products Broker, Marex Spectron

Christie Bradway, Manager – Renewable Power Contracts, Eversource Energy

5:00 p.m. :: Program Adjourns for the day


Wednesday, June 20, 2018

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


8:30 – 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

Jim Duffy, Partner, Nixon Peabody LLP

Bethany Bartlett, Partner, Sherin and Lodgen LLP

Andrew Bernstein, Managing Partner, Kearsarge Energy

Tony Grappone, Partner, Novogradac & Co LLP

10:00 – 10:15 a.m. ::  Morning Break


10:15 – 11:45 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

Jack Velasquez, Senior Vice President-Environmental Markets, Marex Spectron

Jennifer Butt, Environmental Products Broker, Marex Spectron

11:45 a.m. :: Program Adjourns

Speakers

Adam Amann, Environmental Products Specialist, Capital Power Corporation

Bethany Bartlett, Partner, Sherin and Lodgen LLP

Andrew Bernstein, Managing Partner, Kearsarge Energy

Christie Bradway, Manager – Renewable Power Contracts, Eversource Energy

Jennifer Butt, Environmental Products Broker, Marex Spectron

Jim Duffy, Partner, Nixon Peabody LLP

Scott Eidson, Vice President -Environmental Markets, 3Degrees

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

Tony Grappone, Partner, Novogradac & Co LLP

Kirsten Ho, Analyst, Certification Programs, Center for Resource Solutions (CRS)

Michael Judge, Director, Renewable and Alternative Energy Division, Massachusetts Department of Energy Resources (invited)

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

Patrick McFadden, Environmental Products Broker, Marex Spectron

Randy Richard, Environmental Trader – Commodity Portfolio Management, Capital Power Corporation

Gates Sanford, Portfolio Manager, 3Degrees

Ruth Silman, Boston Office Managing Partner, Nixon Peabody LLP

Jack Velasquez, Senior Vice President-Environmental Markets, Marex Spectron

Location

Law Offices of Nixon Peabody LLP
100 Summer Street
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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