Understanding the Basics

RECs represent the environmental attributes of electricity generated from renewable sources such as solar, wind, hydro, biomass, and geothermal energy. Each REC certifies that a specific quantity of renewable energy has been generated and fed into the grid, displacing an equivalent amount of conventional (fossil-fuel-based) electricity.

The tracking of RECs is facilitated through a system known as a Renewable Energy Certificate registry. These registries serve as centralized platforms for issuing, tracking, and managing RECs, ensuring transparency and integrity in the renewable energy market. Each REC is assigned a unique serial number and is tracked as it moves through the market, from generation to retirement.

RECs are typically generated when renewable energy facilities produce electricity and feed it into the grid. For every megawatt-hour (MWh) of renewable electricity generated, one REC is created. The REC represents the environmental attributes associated with that MWh of renewable energy, including reductions in greenhouse gas emissions and other pollutants.

Once generated, RECs can be bought, sold, or traded on various renewable energy markets and platforms. Market participants, including renewable energy developers, utilities, corporations, and environmental organizations, can purchase RECs to meet renewable energy goals, comply with regulatory requirements, or support renewable energy projects.

Practical Applications of RECs

RECs serve multiple purposes and can be used in various ways to support renewable energy initiatives. Some common uses of RECs include:

·       Renewable energy procurement - Organizations can purchase RECs to offset their electricity consumption with renewable energy and achieve their sustainability targets.

·       Compliance with renewable energy standards – Any organizations subject to renewable energy mandates or regulations can use RECs to demonstrate compliance with renewable energy requirements.

·       Carbon footprint reduction - Organizations can purchase RECs as a way to mitigate their carbon footprint and support renewable energy development.

Hit Your Renewable Energy Targets With ACT

As organizations seek to maximize their impact in supporting renewable energy initiatives and reducing carbon footprints, partnering with an experienced environmental solutions provider becomes paramount. ACT Group stands at the forefront of this endeavor, boasting over 15 years of expertise in navigating complex energy markets and facilitating seamless procurement strategies.

We are skilled in procuring high-quality renewable electricity and RECs, and our team of experts can work with counterparties across multiple industries with various climate action goals. We can also tailor renewable energy portfolios to match each counterparty’s exact volume, geography, and technology requirements.

Reach out to one of our experts today to get started on your climate action journey.