Renewable Energy Credits in Texas

By energy_linguist, November 13, 2009, Energy Efficiency, FAQs

In response to the Renewable Energy Portfolio Standard in Texas, Retail Electric Providers have utilized RECs to help meet, and in some cases exceed, the requirements for increasing their renewable energy portfolio.
RECs provide REPs with a measurable way to help the development of new renewable energy projects
in Texas. It also provides Texas consumers with a tangible means to support said projects by purchasing RECs to offset carbon emissions from their energy consumption.

Renewable Energy Credits (RECs) are tradeable certificates that
represent one megawatt-hour of renewable energy produced and placed on
the electricity grid.

Here are a few important details on RECs and how they impact the renewable energy market in Texas:

  • An REP generates the required 1,000 kWh of clean energy – An REC is assigned a unique ID number and is subsequently sold on the open market.
  • ERCOT is responsible for monitoring and administering the REC market in Texas – May 2000 marks the introduction of the REC program in Texas. The Public Utility Commission of Texas monitors the REC program to ensure RPS requirements are maintained.
  • The REC trading program is set to run through 2019 as part of the RPS in Texas.

RECs
offer Texas electric companies a viable option to fill gaps
in their energy portfolio and meet the growing RPS requirements. Remember, the level of renewable energy added to the overall energy portfolio in Texas is set to increase to 10,000 MW by 2025.

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