Environmental Attribute Management
All energy efficiency and renewable energy projects that SBE develops are cost effective, but they also have very important environmental attributes due to their ability to reduce overall energy usage, produce clean energy to replace fossil fuel combustion, or both. These environmental attributes have markets that allow them to be monetized, further contributing to the revenue stream of the project. Currently, the primary environmental attributes that can be monetized are the production of renewable energy and the avoidance of carbon production through energy savings. The primary markets for these attributes arise from the trading of Renewable Energy Credits (RECs) and Carbon Credits (CCs) and from entities meeting self imposed Renewable Portfolio Standards (RPS). RECs are the renewable attribute from generating a unit of clean energy. It is usually measured in Megawatt –hours (MWh) or the amount of electricity produced by a one MW renewable energy plant for one hour. The REC is split from the actual electrons going into the grid and is sold in secondary markets on its own. Carbon Credits are essentially the same thing, except they measure the amount of carbon saved by implementing a particular energy saving measure. It is usually measures in tons of carbon, or the equivalent of removing one ton of carbon dioxide from the atmosphere. They also are sold in secondary markets on their own. The final markets arise from an RPS and they are typically met through the purchase or production of RECs. It should be painfully obvious that this issue is very complex and that’s where SBE comes in to manage our client’s environmental attribute portfolio as a complement to project development and implementation. We offer a full range of management options, including attribute measurement and verification, aggregation, and brokerage.