Renewable & Carbon Market Fundamentals

Business & Compliance Strategies in Trading, Project Finance, Procurement

September 10-11, 2020 | Online ::

0920-carbon-market

This course will evaluate the current status and activity in both renewable energy and carbon markets in the U.S., discussing their history and development process through regulation, policy, and increasing consumer awareness and demand.  It will review the function of different environmental markets and products such as:

• Renewable Energy Credits (RECs) and their essential role in renewable energy developments and financial transactions
• Carbon/emission credits and their role in cap-and-trade, the Low Carbon Fuel Standard (LCFS) program, and in ‘non-attainment area emissions reduction’ opportunities
• Utility green pricing programs, corporate renewable procurement, & the role of RECS in bundled PPAs

Designed for those new to the industry as well as environmental market veterans, this program will feature content from top industry experts who will describe active and emerging renewable and carbon markets in the US, analyzing key financial and contractual considerations, and sharing tips for optimizing business strategies in these unique and dynamic markets.  This program will provide detailed information on both the voluntary and compliance markets across the U.S., describing trends and activity, and providing a current and in-depth understanding of REC/Carbon market forces, dynamics and trading instruments.  There will be a discussion on typical processes for verification, certification, system administration, and appropriate financial structuring to achieve their optimum transactional value. 

Learning Outcomes

• Review the current landscape and history of environmental markets in North America
  • North America, U.S., regional and state
• Discuss fundamentals of registering, selling, settling and tracking RECs
• Examine the fundamentals of REC market dynamics, transaction and trading fundamentals
• Review current carbon policy and pricing initiatives and their performance to date
  • California-Quebec linked cap-and-trade program
  • Regional Greenhouse Gas Initiative, Inc. (RGGI)
• Discuss the status and key trends with voluntary REC markets
  • Utility REC/green pricing programs
  • Commercial and residential buyers
• Evaluate optimal business & compliance strategies in environmental markets
• Analyze historical pricing information, market liquidity, and market fluctuations in both REC and carbon markets
• Review tips for trading, hedging your bets, deciding what to buy, and other mechanisms for successful transactions
• Identify types of environmental market transactions, contract options and processes to piece together a successful financial package
• Assess the emerging Renewable Thermal Credit (RTC) market and tracking system
• Discuss opportunities to generate substantial revenue through emission reduction credits in “non-attainment areas”

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.9 CEUs for this event.

 

Requirements For Successful Completion Of Program

Participants must log in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations and case studies will be used in program.

Thursday, September 10, 2020 Central Time

8:45 – 9:00 a.m. :: Log In

9:00 – 10:30 a.m. :: Introduction to Renewable Energy Markets & Renewable Energy Credit (REC) Market Dynamics

• Background and history of renewable energy credits (RECS)
• Compliance markets and states with renewable portfolio standard (RPS) programs
  • Structure of RECs from a legal and regulatory standpoint
  • Renewable portfolio standard (RPS) programs
  • National perspective vs. regional perspective
• As a compliance mechanism, how are RECs created and transferred?
• REC procurement and sale
• Regulatory/legislative issues
• Voluntary renewable energy credit (REC) & green power markets
  • Background, status and trends
  • Voluntary REC market buyers and players
  • Typical processes and interactions

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: U.S. Carbon Markets, Cap-and-Trade Programs, LCFS, & Emission Trading

This session will provide a big picture overview and update of active carbon markets and carbon policy regimes to date in the U.S. It will focus on carbon/emission trading programs, discussing in detail the California-Quebec and Regional Greenhouse Gas Initiative (RGGI).  It will also discuss the Low Carbon Fuel Standard (LCFS) and provide an update on developments for new carbon market in Washington and Oregon.

• Review current North American carbon policy and pricing initiatives
  • History of cap-and-trade
  • Emissions trading systems in place and in design
• California-Quebec carbon market
  • Program design & market linkage overview
    • Annual caps
    • Allocation of emissions allowances
    • Price control mechanisms
    • Carbon offsets
    • Revenue generation
  • California-Quebec market behavior & results to date
    • emissions reduction by economic sector
    • abatement costs
    • auction prices to date
  • Regional Greenhouse Gas Initiative (RGGI)
    • Participating states: CT, DE, ME, MD, MA, NH, NJ, NY, RI & VT
    • Program design:
      • Auction process
      • Emission allowances
      • Investment of proceeds
    • Summary of market behavior & auction results to date
    • RGGI recent developments: market implications & projected outcomes
      • New Jersey joining in 2020
      • Virginia joining (2021)
      • Pennsylvania – a possible future partner
    • Fundamentals of emission trading
      • Mechanics of how you do trades
      • Who’s involved in trades?
    • Interpret effects of cap-and-trade linkage on emissions reduction costs and allowance prices
    • Review lessons learned from cap and trade auctions to date
    • Low Carbon Fuel Standard (LCFS): overview and update
    • The future landscape of carbon markets & potential emerging markets
      • Washington and Oregon carbon market planning & development update

12:15 – 1:15 p.m. :: Break for Lunch

1:15 – 2:00 p.m. :: Overview 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

2:00 – 2:15 p.m. :: Afternoon Break

2:15 – 4:00 p.m. :: REC Market Forces & Dynamics, Transactions/Trading Mechanics, & Market Case Studies

REC Market Forces & Dynamics: Structural Market Factors That Drive REC Trading & Liquidity

• State and regional similarities and differences
• State main drivers
  • Regulatory/legislative support of Renewables and RPS design: % renewable, resource types, location, entities subject, Compliance payment levels
  • Regulated or deregulated power markets: determines number of natural buyers & ability to trade unbundled RECs
• Regional market drivers:
  • Power market physical design: ISO/RTO states included and load demand
  • Available renewable supply across region
• Overlapping state and regional drivers: interaction between state and regional markets including impact of multi-state qualification
• State specific markets: individual state carve outs, set-asides for preferred resources and in-state requirements and the challenges they pose in trading
  • Solar Renewable Energy Credits (SRECs): Largest Carve out/set aside in most markets
  • Individual state carve outs, set-asides for preferred resources and in-state requirements
• How above factors translate into current supply and demand of various markets
• Why supply and demand fundamentals are not the only driver of price and liquidity
• State and regional program design factors that impact liquidity/short term pricing
• Other factors that impact trading/liquidity and short-term pricing

REC Transactions & Trading Mechanics

• Identify REC market players (buyers, sellers, brokers, traders)
• Transaction types/mechanisms: structured, unbundled, spot vs. forward
• Trade execution: OTC, direct/brokered, exchanges/cleared transactions/ RFPS and auctions
• Role of intermediaries, spec trading and aggregators
• Structured transactions: originated deals vs. traded
• REC Market Trading States & Info
  • Volume of RECs: Std deal size by market/ exchange data regarding OI and traded volumes
  • Value of transactions – compare notional value of deals impacts that has on delivery and credit
  • Liquidity windows/seasonality of markets standard delivery window
• Voluntary Market Dynamics
  • Challenges of participating in the voluntary markets
  • Originated markets and role of corporates
  • Overlap between voluntary and mandatory markets
• REC Market Case Studies: impacts of specific market designs and regulatory change on liquidity and price
  • NJ Solar: closure of current SREC program and transition into new program
  • DC and MD solar: impact of regulatory changes
  • PA Solar: impact of allowing out of state supply and subsequent rule changes
  • MA solar: market design unique characteristics
  • Virginia’s new RPS –how market design will promote and limit traded activity

4:00 – 4:30 p.m. :: Emerging Markets Spotlight – Renewable Thermal Markets

• The need and opportunity for thermal energy stakeholders to receive ‘REC like’ benefits
• Renewable Thermal Certificate (RTC) market development process: voluntary & compliance markets
  • RTC tracking system (M-RETS)
  • RTC certification standard update
• Current landscape of Renewable Thermal Certificate (RTC) trading activity

Friday, September 11, 2020 Central Time

8:45 – 9:00 a.m. :: Log In

9:00 – 9:30 a.m. :: Emission Reduction Credits in “Non-Attainment Areas”

There is a little known, lucrative opportunity in the U.S. for power plants to not only save – but actually generate substantial revenue— through ‘Emission Reduction Credits in Non-attainment Areas’ in the U.S.  This session will discuss this unique type of emission credit, discussing where and how these credits can be obtained through power plant shutdowns. 

9:30 – 10:30 a.m. :: Corporate Procurement: Voluntary Market Trends & Transactions for Corporate Renewable 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. 

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: REC Project Finance & Contract Options

• Piecing together a financial package for RECs
• 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

12:15 p.m. :: Program Adjourns

Mike Taylor, President, Emission Advisors, Inc.

Mike Taylor is a seasoned environmental broker, trader and consultant with over twenty years of experience in U.S. Emission Markets which includes trading, asset management, origination, and brokerage.  He is the #1 Best Selling Author with book “Reduce Carbon Compliance Costs: Strategies for California and Quebec facilities to reduce their compliance cost in the Carbon Cap and Trade Program”.  He currently serves as the President for Emission Advisors, a leading broker and service provider in environmental credit markets. Emission Advisors was formed to assist clients in navigating the ever-changing landscape of environmental markets.  

Erin Eckenrod, Principal, E2 Environmental Services LLC

Erin Eckenrod is an environmental products trader with 14 years’ experience trading, hedging and originating North American Renewables, Carbon and Emissions products.  She has a successful track record of setting up and building environmental trading desks and businesses built around proprietary trading, self-originated product flow, asset optimization.  She currently is Principal at E2 Environmental Services LLC and was previously Head of Environmental Products at EDF Trading, and a Trader in Renewables/Emissions at NRG Energy. 

Benjamin Gerber, Executive Director, Midwest Renewable Energy Tracking System (M-RETS)

Benjamin Gerber is the Executive Director for Midwest Renewable Energy Tracking System, Inc. (M-RETS). M-RETS tracks renewable energy generation in participating states and provinces and assists in verifying compliance with individual state/provincial or voluntary Renewable Portfolio Standards (RPS) and objectives. The importance of M-RETS is to keep track of all relevant information about renewable energy produced and delivered in the region.  Prior to his appointment as Executive Director of M-RETS, Gerber served as Director of Energy and Labor/Management Policy at the Minnesota Chamber of Commerce. He joined that organization in January 2012, representing the Chamber’s energy interests at both the Legislature and the Public Utilities Commission. Prior to that, he was an oil and gas attorney and handled Fredrikson & Byron’s government relations operation in North Dakota, focusing on mining, energy and tax legislation. His Minnesota experience includes time spent at a Minneapolis government relations office, and public policy and legal work for National Wind, LLC, a large-scale community wind developer. 

Supria Ranade, Senior Director of Power Marketing and Wholesale Operations, Lightsource BP

Supria Ranade currently serves as a Senior Director of Power Marketing and Wholesale Operations at Lightsource BP.  She has more than 12 years of experience in the North American power, gas, and environmental markets. Prior to joining Lightsource BP, she worked on structured transactions at Direct Energy, BGC Partners, and Evolution Markets. Ms. Ranade received her Bachelor of Science in Environmental Science, from Johns Hopkins University, a Master of Science at Columbia University. She currently serves on the Board of the Midwest Renewable Energy Tracking System (M-RETS).

Andrew Bernstein, CEO, Kearsarge Energy, LLC

Currently, Andrew Bernstein is the CEO and founder of Kearsarge Energy.  He started Kearsarge in 2009 based on a longstanding belief that renewable and sustainable energy development will continue to accelerate as a key part of the U.S. economy and will play a critical role in overall U.S. competitiveness in the twenty-first century global economy.  Kearsarge believes it can capitalize on highly compelling investment opportunities in wind, hydro, solar, biogas and biomass and deliver strong returns to both its investors and the environment. Currently, The Company is focusing most of its efforts in Solar transactions ranging from $5 to $50 million in total cost. Kearsarge Energy is one of the largest Solar Developers in New England having completed almost $200 million in transactions in the last few years in Solar.  Mr. Bernstein has over 25 years of experience managing a broad range of organizations and divisions from large publicly traded corporations to early stage entrepreneurial enterprises with two successful exits. He has extensive experience in project finance and has consulted on energy development for various clients for more than 18 years. Andrew has lectured and written numerous articles on marketing, renewable financing, business strategy and more recently, on the business challenges of mid-sized IPPs in numerous publications and conferences, including cover stories in Fortune, Knowledge Management and Media Magazine.  Andrew received his bachelor’s degree (AB) from Brown University and an MBA from Harvard University.  In addition to Kearsarge, he currently serves on several nonprofit boards.

Jim Duffy, Partner – Renewable Energy Team, Nixon Peabody LLP

James F. Duffy is a Partner in the Boston office of the national law firm, Nixon Peabody LLP.  He serves as the Co-Chair of the firm’s Renewable Energy Tax Credit Team and concentrates his practice on structuring and closing transactions involving federal income tax credits and other significant federal and state income tax incentives, including Production Tax Credits and Investment Tax Credits for renewable energy.  His practice also covers New Markets Tax Credits.  He has represented numerous developers, investors, syndicators and lenders in structuring and closing renewable energy and other transactions.  He serves on the Board of Directors and is the Secretary of the Distributed Wind Energy Association (DWEA), as well as the Board of Directors of Windustry.  He is a graduate of the University of Rhode Island, B.A. and The Harvard Law School, J.D.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• You will receive a meeting invitation will include a link to join the meeting.
• Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
  • You will need to join the appropriate meeting at the appropriate time.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

REGISTER NOW FOR THIS EVENT:

Renewable & Carbon Market Fundamentals

September 10-11, 2020 | Online

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before August 07, 2020 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800