A new era for biomass energy : converting environmental benefits into additional revenue streams

This PowerPoint presentation examined renewable energy credits (RECs), and Renewable Portfolio Standards (RPS) in the United States in relation to biomass energy production and development. Typically, an REC represents the attributes associated with 1 megawatt of energy, and is assigned a vintage based on the year it is generated. Participants in REC markets included developers; generators; power marketers; traders and brokers; utilities; and green funds. Issues concerning mandatory and voluntary REC markets were discussed. It was anticipated that the voluntary market is expected to increase in the near future. Complexities in REC markets were reviewed with reference to incentives and differing definitions of what constitutes a renewable energy source. An analysis of various biomass plant closures was presented. Pre-incentives, and issues concerning closures due to low prices for outputs were examined. It was concluded that REC markets are purely a function of supply and demand, and that biomass plants generate environmental attributes that provide revenue and level the playing field with non-renewable energy sources. tabs., figs