Craig Hanson and Vice Von Son
The fifth installment introduces "renewable energy certificates" (RECs). RECs are a renewable energy product that companies can purchase to reduce the environmental impact of their business activities. A REC represents the environmental attributes, for example, avoided CO2 emissions, that are created when electricity is generated using renewable resources instead of using fossil fuel sources such as coal, oil, and natural gas. RECs can be sold separately from their associated electricity and thus enable customers to purchase the environmental attributes of renewable power generation independently of their retail power supply. Purchasing RECs, therefore, can be an effective means for a company to "green" the electricity it consumes.
This installment of WRI's Corporate Guide to Green Power Markets provides an introduction to RECs for corporate energy users. This publication:
Defines RECs, their business benefits, and their similarities to other renewable energy products
Outlines several advantages RECs provide relative to green power
Shares strategies for purchasing certificates based on experiences of Green Power Market Development Group partners and other companies
Makes recommendations to market participants and policymakers for addressing challenges and accelerating REC market development.