![]() ![]() ![]() When you retire a REC through the associated tracking system, it cannot be sold again, which means no one else can lay claim to that unit of renewable generation. Once you've acquired a REC, you need to "retire" it in order to be able to use it in your sustainability reporting. If they want to go "100% renewable," they can purchase enough RECs to cover every megawatt hour of energy that they purchase from their utility company or retail electricity provider.Ĭorporations have many different options to acquire RECs from clean energy generators (we'll get to those later in our REC series). RECs provide a way for corporations to pay for renewable energy that gets added to the grid for everyone to use, and to take credit for that energy. ![]() To go "100% renewable," a corporation could put solar panels on every roof of every building and generate enough to cover their needs, but for most corporations, that's impractical, if not impossible. Electrons from a solar plant merge with electrons from a coal power plant, and when you turn on the lights at your corporate headquarters, it's impossible to tell where those electrons came from, exactly. Once a generator releases energy onto the grid through transmission lines, the electrons simply follow the path of least resistance. Those generators are then free to pass on the RECs they receive to another entity. Most renewable energy generators participate in a REC tracking system, and they're the ones who receive the certificates when they sell their electricity on the wholesale power market. How Do Renewable Energy Certificates Work? It's recommended that corporations only procure Green-e certified RECs to make sure they have no issues down the line when it comes to making claims in sustainability reports. Green-e, a nonprofit organization founded by the Center for Resource Solutions, will certify RECs to ensure that they are properly accounted for and that no double counting takes place. RECs can change ownership through the tracking system as they're traded. The certificate is created each time a MWh is produced by a facility registered in the tracking system. The tracking system issues a uniquely numbered certificate for each REC generated. Tracking can also be done through bilateral contract methods. These systems help to minimize the risk of fraud or more than one company claiming the same REC. Who Issues Renewable Energy Certificates?Īs explained by the Office of Federal Sustainability, there are about ten regionally-based electronic REC tracking systems in the United States. The REC generally includes information about the type of renewable resource and where it's located, a date stamp for when it was generated, an emissions profile of the generating source, and a unique identification number. For every megawatt-hour (MWh) of renewable electricity generated and sold to the wholesale market, an associated REC is created. ![]() What Is a Renewable Energy Certificate?Įssentially, a REC is a way to track - and lay claim to - not just the amount of renewable energy that is generated and sold, but also the positive environmental attributes associated with that energy. This article is the first in the series, and covers the basics. That's why we're launching a series of articles covering RECs, including the options to acquire RECs, how to use RECs in sustainability reporting, and the marketing claims companies can make associated with RECs. While some corporations have had renewable energy goals for years, others are looking into them for the first time thanks to growing pressure from stakeholders. To meet those stakeholder demands, corporations need to procure Energy Attribute Certificates, which are called Renewable Energy Certificates (RECs) in the United States (and often referred to as "renewable energy credits"). Investors, employees, and customers are being more vocal than ever about the importance of using green energy and reducing carbon emissions, and "greenwashing" isn't going to cut it: they want to see real change. Today's companies are feeling the pressure to meet clean energy goals. A Guide for Corporate Renewable Energy Buyers ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |