Hi everyone. Let's get to work on balancing the carbon equation.
Environmental/ESG Products: How Created, How Traded
Incredibly complex topic but very important to everyone in energy, not just renewables.
Best reviewed in several sittings, then do a deeper dive depending on your interests. Pick one area, say Solar RECs—which have been around for a while, then move into offset products.
RECs, like those for solar, are just one of many products that settle financially. In addition, there are offsets and other mechanisms both in the US and abroad.
The best place to start to understand this subject from the top down is ICE, the Intercontinental Commodity Exchange.
Great Infographic:
https://www.ice.com/insights/esg-toolkit-series/how-environmental-markets-advance-net-zero
Later, there’s another table that is the directory to products:
https://www.ice.com/energy/environmental
From here you can go to products relevant to your business.
The Brokers In The Space
The dominant firm is Sage Energy Holdings at https://sageenergyholdings.com/
They have a great website with good content on ESG products.
Another is Interactive Brokers at: https://www.interactivebrokers.com/
Not as easy to navigate but some good content.
Take some time to absorb.
Send me a note if you have thoughts on the subject.
crbamford@rockwoodenergysearch.com
Thanks,
Since this topic affects all renewable energy activities in the US, it’s important to have current information and links to the right state information. Even if you’re not a policy wonk, it’s good to review those programs that affect your projects.
Here are some major sources of information at different levels of detail. All worth reviewing.
One new twist is the introduction of Clean Energy Standards(CES), which extends the discussion.
Difference between RPS and CES:
A renewable portfolio standard (RPS)—adopted by 20 states and the District of Columbia—requires a certain percentage of a utility’s electricity to come from renewable energy sources.
A clean energy standard (CES)—adopted by nine states—requires a certain percentage of a utility’s electricity to come from low- or zero-carbon emitting energy sources.
Difference discussed here:
https://www.c2es.org/document/renewable-and-alternate-energy-portfolio-standards/
Overview of RPS
Good article from the US Berkeley Labs, though one year old, on the overview:
https://emp.lbl.gov/publications/us-state-renewables-portfolio-clean
The Climate Exchange Site also is useful: https://climate-xchange.org/
Has a useful dashboard and even webinars.
Detailed Information Sources
The grandaddy of renewable policy information is the “Database of State Incentives for Renewables & Efficiency” at https://www.dsireusa.org/ from the NC State Clean Energy Technology Center.
Has great, detailed coverage of programs within each state, including energy efficiency programs.
Better yet, it covers US Federal Programs. One can drill down on 30 different programs that even cover tax deductions.
The Data Behind Electricity Demand From Data Centers (originally published 7/7/24
There’s plenty of hype about its big growth. The demand coming from data centers used in AI computations is especially newsworthy and covered in a general way by all types of magazines and web publishers.
Actually, the details are quite interesting and don’t get mentioned. Here is a list of articles that you might find useful:
Growth in power from Data Centers
https://www.eia.gov/todayinenergy/detail.php?id=62409
Goldman Sachs Forecast
Generational Growth: AI, data centers and the coming US power demand surge | Goldman Sachs
Rocky Mountain Institute:
https://rmi.org/how-data-centers-can-set-the-stage-for-larger-loads-to-come/
Data center industry news, analysis and opinion
https://www.datacenterdynamics.com
One of Several New Firms Focusing on Energy Supply to Data Centers:
Power Engineering Magazine Covers the Nukes Being Connected to Data Centers and Constellation/Microsoft's hourly carbon-free matching program:
Microsoft data center to be partially powered by nuclear energy
https://www.power-eng.com/nuclear/microsoft-data-center-to-be-partially-powered-by-nuclear-energy/
If you have suggestions for other sources of information about Data Centers, drop me a note:
crbamford@rockwoodenergysearch.com
Charles
Managing Partner at Rockwood Energy Search LLC