Massachusetts looks into new RPS rules that could hurt windfarms

Massachusetts looks into new RPS rules that could hurt windfarms

Charlottesville, Va (Platts)--7Jul2005


New England wind developers warned Thursday that a move by Massachusetts to
revamp its renewable portfolio standard rules could thwart wind development
and crash New England's fledgling renewable energy certificate trading market.

At issue is a decision by the state's Division of Energy Resources to explore
the possibility of making older biomass plants eligible for REC trading.
Currently only new renewable projects are eligible for REC trading. RECs are
in demand because New England lacks enough renewable energy for suppliers and
utilities to meet Massachusetts RPS requirements. Their scarcity has driven up
prices to around $50/MWh, and helped spur development of more than 900 MW of
wind projects in New England. 

If REC prices decline, wind development becomes less likely, they said. "The
more you allow emitting sources to qualify as renewable, the less
encouragement you provide for non-emitting renewable sources, which is a
danger," said a spokesman for Cape Wind, a 420-MW project proposed for
Nantucket Sound. DOER is seeking comments by July 19.

For more information about wind development, take a trial to Platts Renewable
Energy Report at http://renewableenergyreport.platts.com.

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