Announcements


W&S-62: What is the purpose of the Collateral Requirement? Why is there a Collateral Requirement during the project’s operation when the project itself is an asset that is worth much more than the Collateral Requirement required under the REC Contract?

Collateral Requirements can have many purposes depending on the context and the Product that is traded.  One such purpose is to ensure that the Seller has an additional incentive to perform under the Contract even when conditions change and the Seller could potentially receive a higher price for the Product elsewhere in the market.