What type of energy credits?
There are three major categories of energy credits: The Alternative Portfolio Standard (APS), the Renewable Portfolio Standard (RPS) and the Renewable Energy Credit (REC). The APS is a mandate placed on utilities that requires them to supply a percentage of their generation from a mix of clean alternative generation resources. The RPS is a similar program to the APS that applies to generation resources that are powered by a qualifying renewable energy resource (biomass, biofuel). The REC program is an incentive program that pays a cost share on a per kilowatt basis for renewable energy systems such as solar and wind energy.
Who can qualify?
If you have (or plan to have) qualifying equipment installed at your site anytime after January 1, 2008 then you may use the program.
Equipment that produces reliable electricity from efficient sources qualifies for APS. This could include:
- Efficient gasification
- Flywheel energy storage
- Paper-derived fuel
- Efficient steam technology
- Combined Heat and Power (aka distributed generation or co-generation)
Equipment that could potentially qualify for the RPS or REC program include:
- Wind power (turbines)
- Solar power (photo-voltaic)
- Biomass or biofuel-burning power plants
- Geothermal installations
- Solar Thermal installations
What the DCAM vendor does:
DCAM's vendor, Nexant, Inc. will work with DCAM and facilities (including cities and towns) to submit an application to sell potential energy credits in the market. Nexant will ensure that the correct metering is installed and develop the application for enrollment. Once qualified for the program, Nexant will trade any qualified credits on the market and get the best price for the credits. Proceeds from the credit sales will be passed on to the participating facility directly or through DCAM's expendable trust.
What are the benefits?
The credits translate into a revenue stream for your facility with fairly minimum effort. For example, UMASS Amherst arranged for Nexant to sell one project's credits in the market and was paid over $345,000 for one fiscal quarter of participation.
State facilities, authorities and municipalities interested in using this contract should contact Dave Lewis at 413-577-6283.
This information provided by the Division of Capital Asset Management .