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.