USA the compliance market and another for the

USA Renewable Energy Certificates (RECs)


The market for renewable energy in
the USA comprises two types of demand, one for the compliance market and another
for the voluntary one. On the one hand, States’ policies, better known as
Renewable Portfolio Standards (RSPs), require utilities to supply a fraction of
their electricity from renewable sources. (Environmental Protection Agency, 2010; Environmental
Protection Agency, 2010; Environmental Protection Agency, 2010) Each state
separately specifies the energy resources or technologies eligible in their
jurisdiction and describe how electricity service providers must comply. To
comply with their obligations within RPSs, utilities can use Renewable Energy Certificates
(RECs). On the other hand, the voluntary market is driven by the preference of
the consumer for specific energy sources. The voluntary market allows consumers
to go beyond the policy requirements and opens the opportunity for them to
reduce the environmental impact linked to their electricity use. Therefore,
RECs also play an important part in supplying the swiftly increasing demand
within the voluntary market. In order to both markets can coexist and maximize
their effect in the national grid, it is important that the voluntary market is
incremental to the mandatory market.(Environmental Protection Agency, 2018)

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Mexico Clean Energy Certificates (CECs)


In recent years, the Mexican Wholesale
Electricity Market has undergone a major restructuring, with new laws issued,
new public entities created and new policies enforced for the promotion of
renewable energy sources. As part of such changes, as of 2018, the Wholesale
Electricity Market participants with large electricity consumers (with power
requirements equal or larger than 1 MW) are required to comply with a minimum
percentage of electricity from renewable energy sources. The percentage of
renewable energy required will be increased gradually, from 5% in 2018 up to 13.9%
in 2022, and will keep increasing afterwards depending on the evolution of the
scheme. The most important option for the obligated entities to be able to
comply with such requirements is the Clean Energy Certificates (CELs, by its
acronym in Spanish). These certificates are equivalent to one MWh of
electricity produced by technologies deemed as eligible, which include, for
instance, conventional renewable energy sources, efficient cogeneration and
fossil fuel-based electricity production coupled with carbon capture
technologies. Once produced, CELs can be sold if the obligated entity surpassed
its obligations or bought in case of a shortfall. Moreover, CELs can be cancelled
voluntarily, which opens an area of opportunity for a customer-driven voluntary
market; however, the benefits of the CELs voluntary cancellation is still to be