Renewable Energy Certificates (RECs) are market-based instruments that certify the generation of one megawatt-hour (MWh) of electricity from a renewable source. These certificates provide companies and individuals with a way to support clean energy production and reduce their carbon footprint.
How Do RECs Work?
RECs separate the environmental benefits of renewable energy from the physical electricity. When a renewable energy facility produces electricity, it generates both power and RECs. Organizations can purchase RECs to claim the use of renewable energy, even if they are connected to a traditional power grid.
Benefits of RECs
- Encouraging Clean Energy Production: By purchasing RECs, businesses promote the development of renewable energy projects.
- Regulatory Compliance: Some governments require companies to source a portion of their electricity from renewables, and RECs help them meet these obligations.
- Corporate Sustainability Goals: Many organizations buy RECs to meet sustainability targets and enhance their corporate social responsibility initiatives.
RECs play a crucial role in transitioning to a sustainable energy future. By supporting renewable energy sources, businesses and individuals can contribute to reducing greenhouse gas emissions and fostering a cleaner planet.
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