Busy harbor in Norfolk, VA, with ships old and new. |
In the United States, federal and state policies favor renewable energy production by providing incentives for the development of renewable power resources. One primary state-level mechanism for rewarding renewable generators is the Renewable Energy Certificate (REC) market. In many states, laws and regulations require utilities to source a specified portion of their power from qualified renewable resources. Utilities satisfy this compliance obligation by purchasing or otherwise obtaining RECs to cover this load. In addition, a variety of voluntary markets exist for RECs.
Pulp and paper mills are well-positioned to participate in the REC market as sellers. As shaped by the forces of history and economics, today's mills often operate renewable generation such as a hydroelectric generation station or a biomass-fired steam turbine generator. For each megawatt-hour of qualified renewable power generated at a mill, a certified resource's owner will receive one REC. Owners can then sell these RECs in voluntary or compliance markets. The opportunity to sell RECs can enhance the economics of a mill and its renewable generation.
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