Corporate Guide to Green Power Markets: Renewable Energy Certificates

This 16-page backgrounder describes renewable energy certificates (RECs), ”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, says WRI, “can be an effective means for a company to ‘green’ the electricity it consumes.” The backgrounder was written by Vince Van Son of Aloca and Craig Hanson of WRI, this installment provides an introduction to RECs for corporate energy users.