CASE STUDIES 4 of 4

Reaching Out: Maximizing Opportunity with REC Markets

Innovative Energy Systems

Client: Innovative Energy Systems
Location: New York

Challenge/Business Need

Renewable generators were receiving far less revenue in the New York Renewable Energy Certificate (REC) market than the New England markets were offering for similar renewable supply. For Innovative Energy Systems, a generator with several landfill gas projects in New York, reaching into the New England markets represented an opportunity to maximize the value of its assets, increase its operations, and expand the region’s capacity for clean, renewable energy.

CSG’s ROLE

CSG’s Clean Energy Markets Group has provided services to renewable generators since the inception of voluntary and compliance markets. The group’s focus is to assist generators in receiving maximum revenues in REC markets.

For Innovative Energy Systems (IES), continued participation solely in New York markets would have resulted in decreased revenues. The complex process of shifting to the New England REC market required a physical transfer of electricity into New England. With our extensive background in policy and regulations, CSG helped Innovative Energy’s 20-MW gas facility become the first generator to move renewable energy from New York to New England.

Strategy & goals

With help from CSG, the IES team was able to schedule power into the NYISO and NEISO market, generating Renewable Energy Certificates for sale in the NEPOOL GIS market. From the increased REC revenues, IES has been able to invest in bringing an additional 25 MWs of new renewable capacity to their operation.

CSG helped facilitate IES’s shift from the New York REC market to the New England market in several ways:

• Scheduling power
  
• Receiving state and federal qualifications
  
• Creating and implementing a strategic sales plan
  
• Managing the REC portfolio
  
• Executing REC purchase agreements

Impact

“IES is proud to be the first landfill gas generating plant to qualify a New York generation unit for the Massachusetts RPS,” says Innovative Energy CEO Peter Zeliff.

'CSG has helped us identify the most cost effective approach to creating import certificates. CSG’s experience with regulatory and public policy issues provided us with tremendous value as they resolved regulatory and legal issues for us in a timely fashion. As a renewable generation developer, access to high value markets is a tremendous incentive to increase our investment in new units.”

CSG Contacts

Patricia Stanton, VP, Clean Energy Markets
Jennifer Lange, Market Development Manager