Waste To Energy Power Purchase Agreement
RECs are tradable intangible energy products that are spent when one megawatt hour (MWh) of electricity is produced from a renewable energy source and injected into the grid. These certificates are a way for companies to examine carbon reductions resulting from specific projects and to be taken into account in the organisational objectives of using renewable energy. Mandatory rec markets exist in states with renewable energy portfolio (RPS) standards, but there are also voluntary REC markets for those who want to buy them. REC arbitrage, i.e. the near-instantaneous buying and selling of RECs in different markets, can be an option to reduce overall costs if the customer is in a market with high REC prices. For more information on REC arbitration, see the EPA`s REC Guide. The electrical energy generated by the power system is then purchased by the customer at a price that is typically lower than the utility`s retail rate, resulting in immediate cost savings. The ECA rate usually increases by 1-5% per year over the life of the contract (i.e., . B price indexation) to account for the gradual decline in the operational efficiency of the system, operating and maintenance costs, and the increase in the retail price of electricity.
NSA are usually long-term contracts of 10 to 25 years. At the end of the contractual period, the customer can extend the term, purchase the system from the developer or have the equipment removed from the property. Under a PPA, a third party installs, owns and maintains the power system so that the customer can avoid the risks and complexity of owning the equipment. .