RENEWABLE ENERGY FOCUSING ON SOLAR ENERGY. NON-RENEWABLE ENERGY.
RECs, PPAs, & the Alphabet Soup of Purchasing Renewable Energy · Several Types of “Green...
Transcript of RECs, PPAs, & the Alphabet Soup of Purchasing Renewable Energy · Several Types of “Green...
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RECs, PPAs, & the Alphabet Soup of Purchasing Renewable Energy
Katherine DiMatteo Sustainable Food Trade Association & Climate
Collaborative
Mark Trexler The Climatographers
So You’d Prefer a Stable Climate? Purchasing Green Energy
Workshop Agenda • The Relevance of a Stable Climate • The Importance of Energy to a Stable Climate • Can I/We Influence Energy Outcomes? • If So, What Do I Need to Know?
Is a Stable Climate Important?
Is a Stable Climate Important?
Source: IPCC
Is Energy Important to Climate Change?
Is a Stable Climate Important to ME?
Risk or Opportunity?
But Can I/We Influence Energy and Climate Change Outcomes?
The Famous 2x2 Matrix!
To Change Outcomes M
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Doing Things Differently
Influencing Climate Outcomes M
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Innovation
(Policy, Behavior, Technology)
Doing Things Differently
Business as Usual
New Public Policy
Voluntary Action
A No Brainer? M
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Innovation
Doing Things Differently
Business as Usual
New Public Policy
Voluntary Action Voluntary Action
Harder Than It Looks M
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Doing Things Differently
Turns Out Policy is Very Hard Work, + Big Barriers, = Poor Results
Voluntary Action
Harder Than It Looks M
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Incentives and Strategy are Missing
for Innovation
Doing Things Differently
Turns Out Policy is Very Hard Work, + Big Barriers, = Poor Results
Voluntary Action
Harder Than It Looks M
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Incentives and Strategy are Missing
for Innovation
Doing Things Differently
Business as Usual
Turns Out Policy is Very Hard Work, + Big Barriers, = Poor Results
Voluntary Action Voluntary Action
Enter Voluntary Action M
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Innovation
Doing Things Differently
New Public Policy
Voluntary Action Voluntary Action Psychic Benefits
of Voluntary Action
Don’t Talk About It, Be About It!
Now Let’s Talk Green Energy Markets!
Green Energy Options M
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Doing Things Differently
To Claim a Contribution to Climate Stabilization, Have To Go
Beyond BAU
“Additional” Reductions Can be Traced to a Specific Mechanism or Market
To Tackle Climate Change M
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What Someone Can Sell You M
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Doing Things Differently
Leading to Moral Hazard M
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Doing Things Differently
Fighting Moral Hazard M
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Doing Things Differently
Recognize the “Additionality” Continuum
Test for and Communicate Additionality
Several Types of “Green Energy” • Renewable Energy Certificates • Power Purchase Agreements • Local Renewables (Green Tariffs/Community Solar) • Build Your Own
• There Are Many Possible Permutations • Options Available Can Vary Significantly by Time and Location • Relative Economics Can Vary Significantly by Time and Location
Renewable Energy Certificates
• Originally Conceived of for Compliance (RPS) Markets
Unbundled National RECs • Often Deductible Against Your Carbon Footprint • Often the Basis for Carbon Neutrality Claims • No Additionality Requirement • An Annual Commodity/No Long-Term Commitment • Currently Abundant and Cheap (~$1 (equivalent to 1/10th of a cent/kWh)) • No Impact on Project Financing
Power Purchase Agreements (PPAs) • Directly Link You to a Project • (And) Could be Tied to Long-Term Commitment • (And) Could be Considerably More Expensive • (And) Could Contribute to Project Financing • BUT: Is Project Generating Compliance RECs • IF SO: Is Supporting Compliance Additional? • IF NOT: Is PPA Allocation Being Gamed?
Green Energy Tariffs, Community Solar • Projects Probably Generating Compliance RECs • (But) Could be Tied to Long-Term Commitment • (And) Could be Considerably More Expensive if not in Surplus • (And) Could Contribute to Project Financing • BUT: Is Compliance Additional?
Build it Yourself On-Site, No RECs Generation • Requires Capital • Could be Cost-Effective Risk Management • Doesn’t Count Against State Compliance Mandates • Very Likely Additional
You Can Make a Difference! M
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Innovation
Doing Things Differently
Business as Usual
New Public Policy
Voluntary Action
+ Carbon Pricing Advocacy
Long-Term PPA (RPS)
On-Site (non-RPS)
+ Energy Storage
No Voluntary RECs (resist moral hazard)
Thank You!
• Dr. Mark C. Trexler • [email protected] • 503-913-0025 • www.climatographer.com
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