I recently spoke with Seenu Kaliamurthy, Enuit’s Managing Director of Power Solutions, to get an update on the company’s efforts in the environmentals space, which encompasses low carbon trading, carbon offsets, and credits (including RINs, LCFS, RECs, RGGIs, CCA, EUA, GoO etc.,). As ESG continues to gain momentum, there is no doubt the ability to manage those environmental products will become an increasingly important capability in ETRM/CTRM systems. As Mr. Kaliamurthy said, “The enviromentals markets are large now, but with increasing capital coming in to support renewable energy projects – those that produce emissions offsets – there really seems to be no limit on how large these markets can grow.” However, he did note that market growth will depend on standardization and structuring of many of these emerging products, but the increasing number of environmental registries is helping to address that issue. As he noted, most CTRM systems have some basic capabilities in handling these products, but there are subtle differences among those currently available. In particular, valuations can be difficult given that these products do have expiration dates and many offsets require layered price curves to accurately value them, a capability he notes that Enuit’s CTRM system, Entrade, provides.… continue reading
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