World Energy Exchange Completes First Solar Renewable Energy Credit Trade
World Energy Solutions announces the completion of its first online forward auction for
selling renewable energy credits. Conducted for MMA Renewable Ventures,
LLC, a subsidiary of Municipal Mortgage & Equity, LLC, the auction was a pioneering transaction that enabled MMA Renewable
Ventures to leverage online technology to attract competing bidders wishing
to purchase solar renewable energy credits (SRECs) needed to comply with
New Jersey's Renewable Portfolio Standards. The auction resulted in the
sale of 1500 SRECs, the equivalent of 1500 MWh of renewable energy, to be
delivered over a 28-month contract period beginning in January 2007. MMA
Renewable Ventures is a provider of third-party renewable energy project
"MMA Renewable Ventures is committed to optimizing the full spectrum of
financial and technological factors to deliver cost-effective renewable
energy projects, and SRECs are a critical piece of that economic puzzle,"
said Matt Cheney, CEO of MMA Renewable Ventures. "An innovative new tool in
our renewable energy finance toolkit, the World Energy Exchange allows us
to quickly reach a much larger pool of buyers in the competitive SREC
market. With a winning bid that was 25 percent higher than the initial bid,
the online auction likely garnered a higher price for our SRECs than we
would have achieved through a traditional process."
The SRECs were auctioned for MMA Renewable Ventures through a World
Energy Channel Partner, the Dome-Tech Group, a provider of energy
efficiency and clean energy project development and consulting services.
"We've administered World Energy's online auction for energy purchases,
but this is the first time the system has been used for the sale of SRECs,"
said Ed Liberty, Vice President of the Dome-Tech Group. "As the selling
price of SRECs increases, the economics of a solar photovoltaic
installation project improve. Buyers and sellers alike will benefit from
having this new tool at work in New Jersey's solar energy market as we
transition from rebates to a REC-based market."
As part of this venture, MMA Renewable Ventures financed a solar power
project initiative through a power purchase agreement (PPA) with one of
Dome-Tech's long-time commercial and industrial clients. The client agreed
to the installation of solar panels on the roof of its manufacturing
facility in return for a guaranteed source of energy to help power its
facilities. The PPA enables the client to purchase the energy output of the
system without having to purchase the system itself. MMA Renewable Ventures
in turn benefits from a long term power sales agreement with the client and
the sale of solar renewable energy credits to electricity suppliers seeking
to comply with New Jersey's Renewable Portfolio Standard.
"We are pleased that Dome-Tech
had such a successful result on the
retail energy side that they chose us for the forward auction for the
SRECs," said World Energy
President Rich Domaleski. "We believe that the
auction model is ideally suited to the burgeoning green market as it is
efficient, transparent, and, we believe, it extracts the best price out of
the market. With a tool like this, project developers can improve project
economics and accelerate implementation of green alternatives. We are proud
to have been part of this venture with Dome-Tech and MMA, particularly
since, to the best of our knowledge, this is the first SREC on-line auction
in the state's history."
More Alternative Energy Articles
Department of Energy to Train 75,000 Solar Workers
First Hybrid-Flywheel Energy Storage Plant in Europe announced in Midlands
World's Largest Solar Thermal Power Project at Ivanpah Achieves Commercial Operation
NTU Scientists Make Breakthrough Solar Technology
Wireless Devices Go Battery-Free Using "Ambient Backscatter" from TV and Cellular Transmissions
Harvesting Electricity from the Greenhouse Gas Carbon Dioxide
Maine Project Launches First Grid-Connected Offshore Wind Turbine in the U.S.
University Researcher Making Rechargeable Batteries with Layered Nanomaterials
Vestas 8 MW Offshore Wind Turbine Could Power Up To 3200 Homes
Urban Green Energy and GE Unveil the Sanya Skypump, an Electric-Vehicle Charging Station Equipped with Wind and Solar Power
even more articles...
Suggest an Article for Green Progress