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Online Auction Nets Solar Renewable Energy Credits for MMA Renewable Ventures.

ENERGY RESOURCE-8 March 2007-Online Auction Nets Solar Renewable Energy Credits for MMA Renewable Ventures(C)2007 JeraOne -

World Energy Solutions today announced the completion of its online auction for solar renewable energy credits.

Conducted for MMA Renewable Ventures, a subsidiary of Municipal Mortgage & Equity, the auction attracted competing bidders for the solar renewable energy credits (SRECs) needed to comply with New Jersey's Renewable Portfolio Standards.

The auction resulted in the sale of 1500 SRECs, the equivalent of 1500 MWh of renewable energy, to be delivered over a 28-month contract period beginning in January 2007. MMA Renewable Ventures is a provider of third-party renewable energy project finance solutions.

The SRECs were auctioned for MMA Renewable Ventures through a World Energy channel partner, the Dome-Tech Group, a provider of energy efficiency and clean energy project development and consulting services.

"MMA Renewable Ventures is committed to optimizing the full spectrum of financial and technological factors to deliver cost-effective renewable energy projects, and SRECs are a critical piece of that economic puzzle," said Matt Cheney, CEO of MMA Renewable Ventures. "An innovative new tool in our renewable energy finance toolkit, the World Energy Exchange allows us to quickly reach a much larger pool of buyers in the competitive SREC market.

"With a winning bid that was 25 percent higher than the initial bid, the online auction likely garnered a higher price for our SRECs than we would have achieved through a traditional process," Cheney said.

"We've administered World Energy's online auction for energy purchases, but this is the first time the system has been used for the sale of SRECs," said Ed Liberty, vice president of the Dome-Tech Group. "As the selling price of SRECs increases, the economics of a solar photovoltaic installation project improve. Buyers and sellers alike will benefit from having this new tool at work in New Jersey's solar energy market as we transition from rebates to a REC-based market."

As part of the venture, MMA Renewable Ventures financed a solar power project initiative through a power purchase agreement (PPA) with one of Dome-Tech's long-time commercial and industrial clients. The client agreed to the installation of solar panels on the roof of its manufacturing facility in return for a guaranteed source of energy to help power its facilities.

The PPA enables the client to purchase the energy output of the system without having to purchase the system itself. MMA Renewable Ventures in turn benefits from a long-term power sales agreement with the client and the sale of solar renewable energy credits to electricity suppliers seeking to comply with New Jersey's Renewable Portfolio Standard.

"We are pleased that Dome-Tech had such a successful result on the retail energy side that they chose us for the forward auction for the SRECs," said World Energy President Rich Domaleski. "We believe that the auction model is ideally suited to the burgeoning green market as it is efficient, transparent, and, we believe, it extracts the best price out of the market.

"With a tool like this, project developers can improve project economics and accelerate implementation of green alternatives," Domaleski said. "We are proud to have been part of this venture with Dome-Tech and MMA, particularly since, to the best of our knowledge, this is the first SREC on-line auction in the state's history."

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Publication:Energy Resource
Date:Mar 8, 2007
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