Renewing Renewables

Abstract

The current global energy and environment situation can be read as a clear indication of the need for enhanced development of renewable energy. Lessons as to how to do so can be learned from the “greenstream” developments arising from market-based environmental and energy-credit-based trading of the past decade. Public policy and project finance can be linked through carefully crafted programs leading to the creation of sustainable markets. In the renewable portfolio standards markets–where renewable energy credits (RECs) for use of green power have become, in certain European countries and a large number of U.S. states, a legally-defined commodity–programs to create “greenstreams” are being initiated by affording green developers markets or floor price guarantees for their RECs, as well as fostering private competitive auction markets for RECs.