represents the property rights to the environmental, social, and other
nonpower qualities of renewable electricity generation.
serve the role of laying claim to and accounting for the associated
attributes of renewable-based generation. The REC and the associated
underlying physical electricity take separate pathways to the point of
a market based instrument which provides evidence that a generator has
produced a certain quantum of power from a RE resource which has been
consumed and reflects the environmental attributes of the source of
are two main markets for renewable energy certificates in the United
States - compliance markets and voluntary markets.
are known under functionally equivalent names such as Green Tags or
Tradable Renewable Certificates (TRCs), depending on the market. The
U.S. currently does not have a national registry of RECs issued.
Renewable Energy Certificate seeks to address the mismatch between
availability of RE sources and the requirement of the obligated entities
to meet their renewable purchase obligation by purchasing green
attributes of renewable energy remotely located in the form of Renewable
Energy Certificate (REC).
market would provide appropriate opportunities for development of
renewable energy based electricity generation.
are quickly becoming the currency of renewable energy markets because of
their flexibility and the fact that they are not subject to the
geographic and physical limitations of commodity electricity.
Renewable Choice Energy also markets its nationally sourced RECs to
residential and small commercial customers through grassroots marketing
efforts, including direct door-to-door sales and community events.
markets are relatively young but expected to grow rapidly in coming
years as state solar requirements ramp up.
RECs are not the same; cost can vary by location of generator, type of
renewable (wind vs. solar), volume purchased, length of contract term,
whether renewable energy is RPS 8 Innovation for Our Energy Future
in renewable energy development over the past decade has led to the
increasing adoption of renewable energy certificates (RECs) as a means
to track and trade the environmental benefits of renewable energy
are used in both compliance and voluntary markets to meet obligations to
purchase renewable energy, substantiate claims, and as a mechanism to
transfer attributes from one party to another.
use of RECs emerged to simplify contracting, facilitate compliance
tracking, and enable trading among obligated entities, resulting in a
more efficient flow of capital to renewable energy projects.
are generally present in all of these types of products, but in some
cases the RECs are bundled at the wholesale level with electricity and
provided to the consumer, while in others, entities may purchase RECs at
retail separate from electricity.
Renewable Energy Certificates (RECs) have the potential to address some
of the key issues preventing exploitation of renewable potential in
India there are several options for pricing renewable electricity such
as using Market determined prices, linking prices to Unscheduled
Interchange (UI) prices, setting the tariff for electricity generated
from renewable resources as average power purchase price of the
distribution licensee or fixing normative or feed-in tariff for
particular renewable technology.