Renewable Portfolio Standard Calculation
The implications of SB326 on state law are significant regarding the ownership and trade of renewable energy certificates. It establishes that renewable energy certificates are primarily owned by the generator of the renewable energy, unless certain conditions apply, such as agreements with purchasers of electricity. The bill also mandates that public utilities retire certificates associated with their renewable generation, further ensuring accountability and traceability in the renewable energy sector.
Senate Bill 326 aims to amend the Renewable Energy Act in New Mexico, focusing on clarifying the calculation of renewable portfolio standards. This bill specifies the duties of the commission in establishing a renewable energy certificate system, which public utilities can use to demonstrate compliance with these standards. By clearly defining how renewable energy certificates are generated, owned, and traded, SB326 aims to enhance the operation of renewable energy markets within the state, ensuring better tracking and accountability for energy produced and consumed from renewable sources.
While SB326 is poised to streamline the system for renewable energy certificate calculation, it may face opposition from various stakeholders who argue that the new rules might limit certain contractual agreements that previously existed regarding the certificates. Concerns have been raised about the balance of power between public utilities and independent renewable energy generators. Opponents worry that the requirements surrounding ownership and trading of these certificates could rigidify market dynamics and create barriers for smaller entrants in the renewable energy space.