Purpose and History
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The State of Texas Renewable Energy Credit (REC) Trading Program was developed as a result of legislative action in Senate Bill 7, Texas Electricity Energy Restructuring.
The objective of this part of Senate Bill 7 was to increase the capacity of renewable resource generation in Texas to 2,880 MWs by the year 2009 from an already existing 880 MWs.
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(2)
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The State of Texas' REC Trading Program was extended and expanded on September 1, 2005 as a result of legislative action in Senate Bill 20, 79th Legislature, 1st Called Session (2005), which amended Public Utility Regulatory Act (PURA) 39.904, relating to the Goal for Renewable Energy. Senate Bill 20 increased the goal of capacity of renewable resource generation in Texas to 5,880 MWs by 2015 and 10,000 MWs by 2025.
Senate Bill 20 also stipulates a goal that 500 MWs of the target MWs will be from non-wind renewable generation.
This goal is to further promote solar power and biomass technologies.
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In July 2007, the Public Utility Commission of Texas (PUCT) announced its approval for additional transmission lines that can deliver 10,000 more MWs of renewable power by 2012.
Competitive Renewable Energy Zones (CREZs) were designated with a defined goal of increasing transmission capacity to move renewable energy from remote areas to cities.
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In support of the State of Texas' goals related to installation of generating capacity from renewable energy technologies, ERCOT was appointed by the PUCT to administer the Renewable Energy Credit (REC) Trading Program.
As part of the REC Trading Program, each Retail Entity with Load in Texas is assigned an annual RPS requirement.
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ERCOT Protocols Section 14, State of Texas Renewable Energy Credit Trading Program defines requirements for ERCOT and Market Participant responsibilities.
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