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Renewable Energy Credit (REC) Program ERCOT Retail 101. Discussion Topics. Definition and Overview Types of Renewable Energy Rules and Responsibilities ERCOT Renewables Website. Texas Definition Of Renewable. Renewable energy technology is any technology that:

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Renewable Energy Credit

(REC) Program

ERCOT Retail 101

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Discussion Topics

  • Definition and Overview

  • Types of Renewable Energy

  • Rules and Responsibilities

  • ERCOT Renewables Website

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Texas Definition Of Renewable

Renewable energy technology is any technology that:

  • Exclusively relies on an energy source that is naturally regenerated over a short time

  • Derived directly from the sun, indirectly from the sun

  • Derived from moving water

  • Derived from natural movements and mechanisms of the environment.

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Texas Definition Of Renewable

Renewable Energy Technology does not rely on:

  • Energy resources derived from fossil fuels

  • Waste products from fossil fuels

  • Waste products from inorganic sources.

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Examples Of Renewables

Renewable Energy Sources are:

  • Wind Generators

  • Solar Panels

  • Landfill Gas Capture/Utilization Devices

  • Tidal Flow Energy Capture Devices

  • Flowing Water Energy Capture Devices

  • Dams

  • Geothermal Energy Capture Devices

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What is a REC?

  • 1 MWh renewable energy = 1 REC

  • Each REC is good for three compliance periods (two full years and the partial year in which it was created)

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REC Program Overview

  • Affects Competitive Retail Electric Providers & Renewable Generators (MOU/EC)

  • Texas-wide (includes non-ERCOT areas)

  • Requires Competitive Retailers to submit RECs annually for Compliance

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REC Program Purpose

  • Encourage construction and production of renewable energy

  • Promote the use of renewable energy

  • Satisfy the State of Texas renewable energy requirements

  • August 1, 2005 Senate Bill 20 passed, extending the renewable energy requirements to January 1, 2025 with a target of 10,000 MWs

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REC Uses

  • REC Program:

    • Annual REC Compliance Requirement for CRs

    • CRs are required to submit RECs annually in proportion to retail load served in TX

  • PUC Labeling Initiative:

    • RECs can be used for verification of advertising claims for green power

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REC Offsets

  • A REC offset represents one MWh of renewable energy from an Existing Facility that may be used in place of a REC to meet a renewable energy requirement.

  • Existing Facilities are Renewable Energy Generators placed in service before September 1, 1999.

  • Offsets used to reduce the mandated retirement of RECs for Competitive Retailers

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REC Offsets

  • To qualify for REC offsets in the REC Program, a Retail Electric Provider, Must have applied for REC OFFSETS to the PUCT by June 1, 2001

  • REC OFFSETS are not tradable

  • Valid until PUCT revokes/cancels the awarded offsets or until the generator ceases to generate electricity

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REC Offsets & Generation & Transmission Cooperatives

  • G&T Cooperatives may:

    • Be responsible for the cumulative total of Offsets and their distribution and/or redistribution

    • Assign/Distribute Offsets to affiliate cooperative members for use when those members Opt-In to the Competitive Retail Market

    • May redistribute Offsets as additional members Opt-In

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ERCOT Responsibilities

  • PUC appointed ERCOT as REC Program Administrator in May 2000

    • Register Program Participants

    • Create REC accounts

    • Track MWh of renewable energy generated

    • Create unique REC IDs for each MWh

    • Distribute RECs to generators, quarterly

    • Determine annual REC Allocation for Competitive Providers

    • Retire RECs submitted for compliance

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ERCOT Responsibilities

  • Retire REC’s as they expire

  • Maintain public information website

    • Provide monthly report of MWH load in Texas

    • Provide list of REC account holders with contact


    • Provide list of Facility ID Numbers, and associated information

    • Provide reports to the PUCT – Compliance

    • Verify that Competitive Retailers meet REC compliance requirements

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MP Responsibilities: Generators

  • Apply to PUCT for certification as a REC generator

  • Apply to ERCOT for REC account

  • If not an ERCOT polled generator then the generator must enter monthly generation data in the ERCOT Web Site

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MP Responsibilities: Generators

  • Generate & Sell Energy

    • Separate Energy from Credits

    • Two revenue streams for generators

  • Receive and Sell RECs

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MP Responsibilities: CRs and Others

  • Competitive Retail Electric Providers

    • Apply to ERCOT for REC account after certification

    • Obtain annual REC Compliance Requirement from ERCOT by January 31st

    • Submit REC Compliance numbers to ERCOT by March 31st

    • If load is not ERCOT polled, then CR must enter load data in ERCOT Web Site

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MP Responsibilities: CRs and Others

  • Other Entities

    • No Restrictions on Participation

    • Apply to ERCOT for REC account

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  • All data available online for 3 years

  • No limits on REC Account Applications

  • All Activities Available Online

    • Account Registration

    • Trading

  • Secure Portal for REC Account Holders

    • Enable Account Activities: View, sort, batch, or singly identify RECs to Transfer or Retire

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Where is REC Website?

Go to the ERCOT Website


  • Select View Other ERCOT Websites

  • Select Renewable Energy Credits

  • Select Login (New Users will need to register.)

    Some features do not require a login

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ERCOT Renewables Program

Home Page View

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Select Competitive Retailers

List of participating CR/REP Contact info

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  • REC Program is Mandated by the PUCT and administered by ERCOT

  • All CR/REPs serving load must participate

  • All CR/REPs are responsible for their reported load

  • Everything can be done from the ERCOT Renewables website

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ERCOT Challenge

Which of the following is not a renewable energy source?

  • Solar Panels

  • Dams

  • Flowing Water Energy Capture Devices

  • Wind Generators

  • Resources derived from fossil fuels

Answer - E