Enhancing Near-Term Renewable Energy Project Financing by Incenting Long-Term REC Contracts

     

The following Working Paper explores a mechanism for the design of Federal Renewable Portfolio Standard (RPS) / Federal Renewable Electricity Standard (RES) legislation. The first in a series on federal environment al market policy, these Working Papers are intended to offer a project development / finance perspective to the policy debate with the intent to maximize near- term development of, and investment in, renewable energy generation projects. Of joint purpose is to explore ways to moderate the financial impact of the RES on complying utilities and their ratepayers, as well as provide an integrated system that is administrable. Each Working Paper in this series will suggest an RES design option and describe how that element or mechanism works, how it is being practiced now in State RPSs, a justification for its use in the federal system, and propose changes to leading federal RPS/RES bills.