Two Additional US States Have Selected their Compliance REC Tracking System

APX to manage two additional compliance REC tracking systems

One could read this morning on the Green Power Network website that two additional state public utilities commission, in Missouri and North Carolina, had selected APX Inc. as their tracking system for renewable energy certificates (RECs) (decisions adopted in January and February 2010 respectively).

APX will provide registry services to the two tracking system, for compliance purposes, under respectively the North American Renewables Registry (NARR) and the North Carolina Renewable Energy Tracking System (NC-RETS).

Details about the two compliance systems

In North Carolina, the system will work as follows: "NC-RETS will track each North Carolina electric power supplier's compliance against its individual statutory requirement, and its contribution toward the statewide aggregate requirements for energy supplied by swine and poultry waste resources. NC-RETS will also track each electric power supplier's use of energy efficiency to meet statutory requirements. NC-RETS will allow for the import and export of RECs into and out of the NARR, and similar links will be established with additional registries."(Source: APX, press release, 4.2.2010.)

In Missouri, APX will administer the system for compliance with Missouri Renewable Energy Standard. It will then enable the tracking RECs according to their origin, and ensure their certification, transfer and retirement. 2011 will be the first year of compliance in Missouri. In its press releasem APX replaces the decision of the Missouri Public Service Commission in the renewables policy of the state:

"The selection of APX relates to the 2008 Missouri initiative known as 'Proposition C' in which voters approved Missouri's Renewable Energy Standard (RES). The Missouri RES sets portfolio requirements for electric utilities to meet with electricity from renewable energy resources as a portion of the electric utility's retail sales: 2% by 2011; 5% by 2014; 10% by 2018; and 15% by 2021." (Source: APX, press release, 19.1.2010.)

REC Tracking Systems in the United States

There are currently nine REC Tracking Systems operational in the United States plus one hybrid because of overlapping, covering one or more states. Note that some of these schemes include Canadian provinces. Those are:

1. ERCOT - Electric Reliability Council of Texas. Covers: Texas.
2. M-RETS - Midwest Renewable Energy Tracking System. Covers: Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, South Dakota, and Wisconsin.
3. MIRECS - Michigan Rneewable Energy Certification System. Covers: Michigan.
4. NARR - North American Renewables Registry. Covers: Alabama, Alaska, Arkansas, Florida, Georgia, Hawaii, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma, South Carolina, Tennessee.
5. NARR/PJM-GATS - NARR/PJM Generation Attribute Tracking System, which is an overlapping scheme. Covers: Indiana, New Jersey and Ohio.
6. NEPOOL GIS - NEPOOL General Information System. Covers: Connectivut, Maine, Massachusetts, New Hampshire, Rhoe Island, Vermont.
7. North Carolina Renewable Tracking System. Under development.
8. NYSERDA - New York State Energy Research and Development Authority. Covers: New York.
9. PJM-GATS. Covers: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pensylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
10. WREGIS - Westen Renewable Energy Generation Information System. Covers: Arizona, California, Colorado, Idaho, Montana, Nebraska, Nevada, New Mexico, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming; Canadian provinces Alberta and Britisk Columbia. (Source: Green Power Network.)

Analysis

Tracking systems for electricity generation attributes are well established now, and are developing further towards a total covering of the national US territory. Electricity tracking goes beyond grid barriers, which allows for some synergies. This is at least true in principles. Some of the remaining barriers to trade attributes between tracking systems for compliance are the subject of one of my forthcoming articles entitled "Terms and Conditions of Renewable Energy Certificates Trading in the United States", in EU Energy Law and Policy Issues, ELRF Collection (Euroconfidentiel, March 2010). Going beyong state and electricity grid barriers form also part of joint ambitions and business opportunities in the realisation of renewable energy goals in the US, based on complementary natural resources. A follow-up question would here be: Could we already speak about "a" US renewable energy market"?

These announcements also underline the possible integration of energy savings within the scope of electricity attributes. There is indeed a growing interest in white certificates in the United States, with some few concrete realisations however.

Picture: National REC Tracking System Map, Green Power Network.