Denton Municipal Electric Proposes New Renewable Energy Policy for REC Management

During a recent meeting of the Denton Sustainability Framework Advisory Committee, key discussions centered around the city’s renewable energy strategy and the management of Renewable Energy Credits (RECs). The committee reviewed the current status of Denton Municipal Electric (DME) in achieving its goal of 100% renewable energy, emphasizing the importance of accurately accounting for energy production and the associated RECs.

A significant point raised was the acquisition of additional RECs, which are essential for validating the renewable energy generated. The committee clarified that for every megawatt of renewable energy produced, a corresponding REC is awarded. This means that even if DME does not own the energy directly, the RECs purchased still represent validated energy production.

The committee highlighted the current practice of allowing RECs to expire rather than retiring them, which has implications for how the city accounts for its renewable energy goals. Each REC has a lifespan of three years, and the committee discussed the need for a clear policy that outlines how these credits are treated. The proposed policy aims to ensure that RECs counted towards the renewable energy goal are retired to prevent double counting, a concern raised during an internal audit.

Additionally, the committee discussed the potential for DME to sell excess RECs if the city exceeds its renewable energy targets. This could provide a financial benefit while also supporting the broader goal of sustainability. The discussion also touched on the fluctuating costs of RECs in the market, which can range from $1.50 to $2.25, and the implications of these costs on the city’s budget and energy procurement strategies.

Another critical topic was the anticipated increase in energy demand from data centers in the Denton area. With projections indicating a significant rise in energy loads, the committee acknowledged the need for a robust renewable energy framework to accommodate this growth while maintaining sustainability goals.

In conclusion, the meeting underscored the importance of developing a comprehensive renewable energy policy that aligns with Texas's Renewable Portfolio Standard. The committee's recommendations aim to enhance transparency and accountability in Denton's renewable energy efforts, ensuring that the city can meet its ambitious sustainability targets while navigating the challenges posed by increasing energy demands. The next steps will involve presenting these recommendations to the city council for further consideration and action.