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WREGIS Implementation and Capabilities of Regional Tracking .ppt

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WREGIS Implementation and Capabilities of Regional Tracking .ppt Powered By Docstoc
					          WREGIS, Existing Registries, and
          RECs/GHG Tracking and Trading

                        Devon Walton
         Director, Environmental Markets – APX Inc

                    CPUC/CEC Workshop
                 San Francisco, September 6th, 2007




Page 1                APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Summary



  • Overview of WREGIS
  • WREGIS Comparison with other Tracking
    Programs
  • Additional Functionalities
  • Supporting Greenhouse Gas programs
  • Enhancing Trading of Renewable Credits




 Page 2         APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview - Background

•     Senate Bill 1078 (2002) created CA RPS. This bill required the
      Energy Commission to design and implement a tracking and
      verification system for renewable energy output

•     In 2003, the Energy Commission joined with the WGA & WECC
      to complete a needs assessment and obtain funding for a new
      system

•     WREGIS objectives:
        –    Policy Neutral
        –    Uses independent, verifiable and reliable data
        –    Provides data to facilitate verification of compliance with state/provincial and voluntary
             policies and programs
        –    Protects against double-counting and leads to increased credibility and consumer
             confidence
        –    Facilitates commercial trading of renewable energy certificates

•     In 2006, APX was selected to modify existing software to meet
      WREGIS requirements



    Page 3                             APX Proprietary -- Copyright © 2007 APX Inc.                 July 18, 2012
WREGIS Overview - Purpose


 • Provide a single institution in the West that will issue,
 register and track renewable energy certificates for use in
 verification of compliance with state regulatory and
 voluntary market programs


 • Protect against multiple counting and selling of the same
 renewable energy


 • Support voluntary renewable energy markets


 Page 4              APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – What is a WREGIS Certificate


• A WREGIS Certificate is an electronic record of reported
    generation and its attributes

•    WREGIS Certificates include both static information
    (Generating Unit) & dynamic information (i.e. MWh)


                        – Facility Location
                        – Generating Technology
                        – Facility Owner
                        – Fuel Type
                        – Nameplate capacity
                        – Year operation began
                        – Month/year of generation



     Page 5              APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – Registration and Login
There are 3 types of Users in
WREGIS:
Account Holders, Reporting
Entities, and Program
Administrators




                    • Secure Login for all users and
                      User Types

                    • Public Reports with high-level
                      access to   specific system
                      data:
                          1. Registered Account Holders and
                             Generators
                          2. Certificate Activity Statistics –
                             Creation, Transfer, Retirement,
                             etc
                          3. Bulletin Board for posting
                             certificates for sale

  Page 6             APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – WREGIS Administrator




                           WREGIS Administrator uses their account
                           to:
                           • Proxy Logon on behalf of other Account
                           Holders
                           • Monitor Account Holder Activity
                           • Review and Approve New Account
                           Registration
                           • Review and Approve New Generating Unit
                           Registration
                           • Review and Approve Certificate Only
                           Import/Export (Not Shown)
                           • Review and Approve Generating Unit
                           transfer (Not Shown)
                           • Review and Approve Agent Login
                           registration (Not Shown)




 Page 7          APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – Reporting Entity and
Program Administrator
Reporting Entities use their Meter Data Loading Module to load
MWh output data for registered generators:




  Program Administrator use their Program Eligibilities Module to
  load program eligibility information for registered generators:




    Page 8                      APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – Account Holders




                      Account Holders use their account to
                      register and manage their generating
                      units, manage their certificates
                      (transfers and retirements), and publish
                      reports for account auditing, RPS
                      compliance and data management.



 Page 9       APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – Certificate Transfers




 Page 10          APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
WREGIS Overview – Reporting and Other
Functionality


                 Each User Type has its own set of
                 reports pertinent to their needs
                 and uses.


                 In addition to one-time
                 certificate transfers, WREGIS also
                 provides for Standing Order and
                 Forward Certificate transaction
                 types.




 Page 11         APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
          Regional Tracking Systems in the US
         Juneau




                                                                                                                                                                                                                                                                  Region     Launch    APX Role
             BRITISH
             COLUMBIA                                                                  MANITOBA                                                                                                                                                                  1: ERCOT    2001       Develop
                                                                                                Lake


COUVER
                                                                                                Winnipeg
                                                                                                                                                                                                                                                                 2: NEPOOL   2002      Develop,
SLAND
          Victoria
                       Vancouver
                                                                                                                                                                                                                                                                 GIS                   Operate,
                       Olympia

                  WASHINGTON
                                                                                      Winnipeg
                                                                                                                                        Lake
                                                                                                                                                                                                                                    MAINE

                                                                                                                                                                                                                                  Augusta
                                                                                                                                                                                                                                                                                      Administe
               Salem
                                                          Helena
                                                                                 NORTH DAKOTA
                                                                                                     MINNESOTA
                                                                                                                                        Superior


                                                                                                                                                                Lake
                                                                                                                                                                                                                Montpelier


                                                                                                                                                                                                              VERMONT
                                                                                                                                                                                                                               NEW
                                                                                                                                                                                                                               HAMPSHIRE
                                                                                                                                                                                                                                                                                          r
                                                                                                                                                                                                                                  Concord
                                                                                      Bismark                                                                                            Lake
                                                                MONTANA                                                                                         Huron                                  NEW                              Boston


                                                                                                                                                                                                                                                                 3: PJM      2005       Develop
                                                                                                                                                                                         Ontario
                                                                                                                                                                                                       Y0RK                                      MASSACHUSETTS
                  OREGON                                                                                   St. Paul       WISCONSIN                                                                           Albany                     Providence
                                                                                 SOUTH DAKOTA                                                                                                                      Hartford           RHODE ISLAND
                                      Boise                                                                                            Lake
                                                                                                                                                                            Lake

                                                                                                                                                                                                                                                                 GATS
                                                                                                                                                                                                                                   CONNECTICUT
                                                                                        Pierre                                         Michigan       MICHIGAN              Erie
                                        IDAHO
                                                                WYOMING                                                                                  Lansing         Windsor
                                                                                                                                                                                    PENNSYLVANIA
                                                                                                                                  Madison                                                                               Trenton
                                                                                                                                                                                                                          NEW JERSEY
                                                                                                                 IOWA                                                                        Harrisburg


                                                                                                                                                                                                                                                                 4: WREGIS   6/2007    Develop,
                            NEVADA                                    Cheyenne    NEBRASKA                                                                            OHIO                        Annapolis            Dover
                                                                                                                Des Moines                         INDIANA                                                              DELAWARE
    Sacramento                                                                             Lincoln                                 ILLINOIS                                         Washington D.C.
                                               Salt Lake City                                                                                                       Columbus                                            MARYLAND
                      Carson City                                                                                                                                                    WEST



                                                                                                                                                                                                                                                                                       Operate
                                                                                                                                                     Indianapolis                  VIRGINIA       Richmond
                                                                      Denver                                                           Springfield
                                                                                                                      Jefferson City                                            Charleston
                                                 UTAH                                             Topeka                                                                                         VIRGINIA
                                                                                                                                                                    Frankfort
                                                                     COLORADO
         CALIFORNIA                                                                     KANSAS                                                          KENTUCKY                                      Raleigh
                                                                                                                        MISSOURI


                                                                                                                                               TENNESSEE
                                                                                                                                                            Nashville
                                                                                                                                                                                  NORTH CAROLINA
                                                                                                                                                                                                                                                                 5: M-RETS   7/2007    Develop,
                                                                                         OKLAHOMA
                                                                                                                                                                                                                                                                                       Operate,
                                                                Santa Fe                                                ARKANSAS                                                   Columbia
                                         ARIZONA
                                                                                           Oklahoma City                                                                                  SOUTH
                                                                                                                                                                           Atlanta
                                     Phoenix                       NEW MEXICO                                            Little Rock    MISSISSIPPI                                      CAROLINA
                                                                                                                                                      Montgomery
                                                                                                                                                                         GEORGIA                                                                                                      Administe
                                                                                                                                                                                                                                                                                          r
                                                                                                                                         Jackson        ALABAMA

                                                                                       TEXAS                                Baton Rouge                                         Tallahassee

                         BAJA                                                            Austin                              LOUISIANA
                     CALIFORNIA
                       NORTE


                                                                                                                                                                                               FLORDIA




                      Page 12                                                                                                   APX Proprietary -- Copyright © 2007 APX Inc.                                                                                                          July 18, 2012
Comparison of Tracking Systems

FEATURE                                   NEPOOL      PJM    WREGIS     MRETS       ERCOT
Verification, Certificate                      √        √        √          √             √
creation, RPS Compliance for
Renewable Generators
Verification, Certificate                      √        √
creation, RPS Compliance for
non-Renewable Generators
Emissions Tracking (CO2, SO2,               √ (*)       √                                 √
NOX)
Deliverability                                 √        √

Energy Efficiency                              √

Carbon Avoidance
                                                            In discussion
Allowances (Cap Monitoring &
Enforcement) ; & Project
Offsets
    (*) NEPOOL GIS also tracks CO, Mercury,
Trading (tradable commodity Particulate Matter, & Volatile Organic Compounds
separate from a traditional
REC) 13
 Page                             APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Additional WREGIS Functionalities


   • WREGIS can be enhanced and support other
     important environmental programs:
           – Track deliverability of Renewable Power into California
           – Support Energy Efficiency programs
           – Support Emissions monitoring and Greenhouse Gas (GHG)
             programs
              • Emissions Allowances
              • Carbon Project Offsets (verified emissions reductions)
           – Enhance trading of Renewable Energy Credits




 Page 14                    APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Emissions Tracking

Current use of Emissions                          NEPOOL           PJM          WREGIS   M-RETS      ERCOT
            Data
Reporting to Air Regulators:                            √            √                                    √
Fuel Mix, Total Emissions by
Fuel and by Generator, System
Emission Mix, etc
           Emission Data Source
EPA                                               √ (**)           √(*          N/A      N/A
                                                                    )
Self-Reported (CEM data)                                √            √          N/A      N/A              √
Mandatory Generator                               √       (**
Registration                                              *)
 (*) EPA data provided to, and subsequently used in GATS is up to a year old.
 (**) EPA data is used each quarter to verify that identified units are accurately reporting their
 emissions into GIS
 (***) Generator registration in PJM GATS is voluntary. However, emission data are modeled for all
 PJM-area generators




 Page 15                         APX Proprietary -- Copyright © 2007 APX Inc.                     July 18, 2012
Deliverability



   • Tracking System can be used to prove that energy
     was delivered to a specific state and/or region
   • NERC Tags are used to prove energy delivery –
     typically, ISO/RTO provide hourly import schedule to
     Tracking System, which matches claimed with actual
     NERC Tag ID
   • Both System and Unit Contracts are supported
   • Successfully used in New England and PJM
   • This functionality could be implemented into the
     WREGIS system



 Page 16            APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Energy Efficiency

   • Starting with Connecticut, states are building
     mandatory and voluntary compliance programs
     around Energy Efficiency
   • Tracking Systems (NEPOOL GIS), support these
     programs: One Certificate created per 1 MWh of
     energy efficiency savings or avoided power
     generation
   • Similar to RPS, state regulators define an annual
     obligation (% of state load) – as in RPS, tracking
     system is used to facilitate certificate trading and
     compliance reporting
   • Example: Connecticut’s Energy Efficiency program
     (Class III), nicely integrated in NEPOOL GIS

 Page 17             APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Carbon Avoidance

   • Enhancing a Tracking Systems to calculate the
     avoided emissions for every MWh of energy is not
     difficult
   • The formula for avoided emissions takes into account
     several factors, such as geography and the
     emissions footprint for the state or region
   • Tracking system still creates one certificate per MWh
     – additionally, creates carbon avoidance certificates
     (one per Ton CO2), and maintains “cluster” with
     original, MWh-based certificates
   • Certificates can be used in either REC or Carbon
     Trading Programs. System reliably supports policy,
     by “retiring” the appropriate “cluster” of certificates


 Page 18             APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Allowances & Offset Management


   • Existing functionality in Tracking Systems supports
     Load Obligations Management (creation, transfer,
     compliance)

   • Functionality can be enhanced to support Allowances
     and Offsets in Carbon Trading programs
           – APX technology development is already underway


   • Tracking System will provide then a fully integrated
     solution, linking REC, Energy Efficiency and Carbon
     Trading programs



 Page 19                    APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Linking Renewables, Energy Efficiency &
Carbon



   • Extending the current infrastructure, is
     the most efficient and cost effective
     approach to handle Emission Allowances,
     Project Offsets, Energy Efficiency and
     Avoided Emissions

   • Doing so is neither costly nor
     difficult, and the approach is being
     advocated by a number of stakeholders in
     the industry (costly is a relative term
     – build new or add into existing system)


 Page 20          APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Tracking Systems role in RGGI


   • In the Regional Greenhouse Gas
     Initiative (RGGI), NEPOOL GIS and PJM
     GATS will be used to calculate:
           – the amount of electricity being used in the RGGI region
             (currently Maine, New Hampshire, Vermont, Massachusetts,
             Rhode Island, Connecticut, New York, New Jersey and
             Delaware)
           – the environmental attributes of generating units within
             the RGGI region
           – the environmental attributes of generating units outside
             the RGGI region, and
           – the environmental attributes of power being imported
             into the RGGI region from outside the RGGI region
   • Ongoing discussion regarding use of
     tracking systems in managing RGGI
     allowances
   • This market infrastructure, provided by
     APX, can be made available in WREGIS

 Page 21                  APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Enhancing REC Market Development


   • WREGIS can enhance market development
     and transaction activity by:
           – Providing existing Bulletin Board functionality,
             with enhancements
              • …but not mandating or otherwise inhibiting other
                market mechanisms for transfers between parties
           – Supporting price transparency:
              • Requiring price reporting for some or all transfers
                between account holders
              • Providing anonymous reporting of aggregate REC
                volume and pricing statistics
           – Compatibility with other Tracking Systems:
              • Linking tracking systems expands the voluntary REC
                market to a much larger market pool
              • Communication protocol for import/export of
                certificates with other tracking systems (WREGIS
                compatibility with M-RETS released this week)




 Page 22                  APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Enhancing REC Trading Programs – Bulletin
Board



Add the ability to enter a
bid or ask $ prior to
submittal and posting to
the Bulletin Board

                                                                            Post the entered bid/ask
                                                                            next to the quantity of
                                                                            certificates for interested
                                                                            buyers/sellers to see.




    Page 23                  APX Proprietary -- Copyright © 2007 APX Inc.              July 18, 2012
Enhancing REC Trading Programs


   • Add price disclosure to the Certificate Transfer and/or
     Retirement screen
           – Make these fields optional or required




   • In PJM-GATS, these fields are already in use –
     adding them to WREGIS is easy.
   • Provide confidential and anonymous reporting on
     prices – where reporting thresholds can govern the
     amount of pricing data that is published and/or
     publishable

 Page 24                        APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Conclusions

• WREGIS project was launched to support the RPS Compliance
  programs in the Western Interconnect and facilitate REC
  transactions for the voluntary markets
• Protects against double-counting and leads to increased
  credibility and consumer confidence
• WREGIS is built on existing APX registry technology that is
  currently tracking emissions and energy efficiency –
  enhancement for other Carbon Certificates (allowances and
  offsets) is simple, inexpensive, and underway, should WREGIS
  decide to use it.
• Adding price disclosure elements to the existing Bulletin Board
  and REC transfer screens could go a long way in promoting
  REC transactions and the REC marketplace
• Support price transparency by providing anonymous reports on
  REC pricing statistics
• Compatibility with existing and emerging tracking systems will
  further stimulate the REC marketplace by opening it to a much
  larger market pool

 Page 25               APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012
Contact Information




                 Devon Walton
              dwalton@apx.com
                 408-986-2258
                          APX Inc




 Page 26        APX Proprietary -- Copyright © 2007 APX Inc.   July 18, 2012

				
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