Renewable Energy Credit (RECs) Market Dynamics

November 30 - December 1 2023 | Live Streaming Online

A Program

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If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

The surge of public demand for renewable energy solutions to address decarbonization and climate change objectives has pushed up the value and importance of renewable energy credits (RECs).  How utilities, load serving entities and corporate power consumers source their RECs is now a business in its own right.  It requires meticulous awareness as well as attention to the nuances of REC procurement, markets, and trading. 

This symposium will dive into the dynamics of both voluntary and compliance REC markets, with particular emphasis on how they are formed and influenced through regulation, policy and evolving consumer awareness and demand.   REC market experts will characterize active and emerging REC markets in the U.S., emphasizing key financial and contractual considerations.  They will interpret trends and dynamics in regulated and retail utility markets and green pricing programs, along with corporate renewable procurement through power purchase agreements (PPAs).  The program will offer insight into the important REC processes that utilities and corporate REC participants must perfect – such as verification, certification, system administration, and appropriate financial structuring – to achieve their optimum transactional value.  Finally, attendees will explore with subject matter experts what ISO or FERC initiatives regarding carbon pricing could portend for the pricing of RECs and other renewable energy market products.

Learning Outcomes

  • Assess the current landscape of environmental markets in North America
  • Identify the fundamentals of REC market dynamics, transaction and trading
  • Detail the requirements of registering, selling, settling and tracking RECs
  • Recognize compliance REC markets drivers, key trends and transactional elements
  • Discuss voluntary REC markets drivers, key trends and transactional elements
  • Review carbon policy and pricing initiatives, their performance to date and what the policies of a new (green-friendlier) administration portend
  • Discuss tips for trading and hedging RECs – deciding what to buy and other aspects – of “in-the-money” transactions
  • Define critical REC transaction elements from a project developers’ perspective
  • Evaluate optimal business and utility/LSE strategies in environmental markets



9:00 a.m. – 4:45 p.m. Central Time

9:00 – 9:15 a.m. :: Overview & Introductions

9:15 – 10:30 a.m. :: Survey of Renewable Energy Markets & Renewable Energy Credit (REC) Market Dynamics

  • Background and history of RECs
  • 5 Ws of RECs
  • Structure of RECs from a legal and regulatory standpoint
    • Renewable portfolio standard (RPS) programs
    • National elements
    • Regional and state elements
  • States with RPS programs and/or related RECs structures
  • How are RECs, originated, created, and transferred?
  • REC procurement and sale
  • Regulatory/legislative issues
  • Update on regional REC market activity
  • Renewable Energy Credit (REC) Market Dynamics
    • REC market forces and dynamics
    • REC statistics by technologies
    • REC statistics by state
    • Multi-state qualification
    • Compare and contrast regional markets
    • Solar renewable energy credits (SRECs)
    • Carve-outs, set-asides and other focusing instruments
    • Describe a summary of oversupply/undersupply in the RECs market(s)
    • Identify the function of alternative compliance payment mechanisms

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:00 p.m. :: Survey of 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)
    • NEPOOL – Generation Information System (New England)
  • 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

12:00 – 12:45 p.m. :: Lunch Break

12:45 – 2:00 p.m. :: REC Transactions & Trading Components

  • Identify REC market players (buyers, sellers, brokers, traders)
  • Technicalities of a REC transaction process
    • Successful transaction mechanisms
    • Trade execution
    • Structured transactions
  • ETRM solutions
    • Inventory management
    • Certificate tracking
    • Obligation calculation and management
    • Cross-market compatibility
    • Proper REC valuation
    • Accounting processes
    • Reporting
  • 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

2:00 – 3:00 p.m. :: Compliance REC Market Landscape for Utilities, Load Serving Entities and Retail Energy Providers

  • Regulated vs. deregulated power markets
  • Relationship of REC tracking systems mirror the ISO/RTO regions
  • Retail power sales and renewable generation and region/ISO
  • Installed wind capacity vs. wind resource map
  • Map of U.S. installed solar capacity vs. solar resource map
  • Regions and REC products traded
  • Types and method of transacting

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 4:45 p.m. :: Compliance REC Transactions from the Perspective of Sponsors, Project Developers, Merchant Generators, Utilities, and Marketers

  • RECs role in the overall financing of a solar project
  • Piecing together a financial package for RECs
    • Available financing models in light of the IRA
    • Key provisions for renewable tax credits under the IRA
  • 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 studies
  • Has the inflation reduction act (IRA) changed anything?
    • Transfers of tax credits to third parties
    • Key considerations and next steps for renewable energy developers, producers, and investors that are considering a purchase or sale of credits

4:45 p.m. :: Course Adjourns for Day


9:00 a.m. – 12:30 p.m. Central Time

9:00 – 10:00 a.m. :: Voluntary REC & Green Power Markets Landscape

  • 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

10:00 – 10:15 a.m. :: Morning Break

10:15 – 11:15 a.m. :: Voluntary REC Market Trends & Transactions for Corporate Renewable Procurement and Green PPAs

This session will discuss growing national trends in corporate and industrial renewable energy procurement, and how these projects are driving demand for clean energy and growing voluntary renewable markets across the country.  The session will also address specifics of negotiation of renewable power purchase agreements (PPAs) associated with these projects, discussing considerations from both the buyer and seller perspective, and tips to optimize the purchase and sale of a project’s associated environmental attributes. 

11:15 a.m. – 12:30 p.m. :: Status and Outlook for Carbon (and Other Clean Energy, Non-REC) Markets

  • Current landscape of carbon and other clean energy, non-REC markets initiatives underway in North America
  • General framework of elements that carbon pricing measures need to address, if implemented
  • Regulatory concepts under consideration that might impact the power markets
  • Examine what might work and what might not among carbon pricing measures in process
  • Evaluate the prospective impacts on slices of renewable energy markets if carbon pricing measures are enacted
  • Locational marginal emissions” (LMEs) – a force multiplier?
  • Should there even be centralized (federal) or multiple regional attribute markets?
  • Has the IRA altered the necessity and/or value proposition of attribute markets?

12:30 p.m. :: Course Adjournment