Friday, April 07, 2006

White Tags Encourage Implementation of Demand-Side Mangement Programs

Via SNL Interactive:
The latest energy trading certificates to hit the market are energy efficiency credits, otherwise known as White Tags or EECs, which represent 1 MWh of energy savings.

The credits are an alternative to renewable energy credits and trade in a similar fashion. But unlike RECs, which are tied to creating and delivering renewable power and are measured by meter readings, White Tags are created by reductions in energy usage and are measured through software and control technology.

'It rewards companies and others that have actually implemented demand-side management programs and it encourages more to happen,' Sterling Planet Inc. President and CEO Mel Jones told SNL Energy. 'It's a measurement of energy efficiency based upon certain rules that are established … so that the customer can determine how many kWh are saved over time. They are sold just like RECs except they are credits generated from energy savings, whether it's a new chiller you put in a building or energy management systems or just processes that you do to lower your demand.'

Three states have adopted legislation requiring White Tags as part of a mandated portfolio standard. Connecticut will be the first state to implement a White Tag standard in 2007, according to Jones. Nevada and Pennsylvania have adopted White Tag mandates as well. White Tags originated in the United Kingdom, France and Italy, according to Jones.
Read the full article.

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