To document and report that the energy you consume in North America comes from renewable energy sources, you must buy Renewable Energy Certificates (RECs). In the US RECs are used both for compliance reporting as well as voluntary consumption, and comply with the Greenhouse Gas Protocol. Green Energy Solutions also offers Green-e eligible RECs across North America. Green-e is North America’s leading certification program for renewable energy.
How RECs work
Renewable Energy Certificates (RECs) are designed as a market-based instrument to provide an economic incentive for electricity generation from renewable energy sources. Each REC represents proof that 1 MWh of renewable energy has been produced and embodies the environmental benefits associated with that amount of generated renewable energy. REC registries electronically issue RECs based on renewable energy generators’ output. A REC, and its associated attributes and benefits, can be sold together or separately from the underlying physical electricity associated with the renewable energy generation. RECs are an effective and recognized way of reaching emission targets and improving sustainability.
RECs are traded. When a company buys RECs as documentation for the electricity delivered or consumed, those RECs are canceled in the registry. This single standardized instrument makes it easy to track ownership, verify claims, and ensure that RECs are only sold once and there is no double counting.
How we work
Our team will educate you about the market, explain your options, and serve as an unbiased resource you can trust and depend on. We strive to simplify the process of REC compliance for all our clients through automation and proactive actions in the market. With our strategic relationships with both renewable energy generators and multiple regulatory bodies, Green Energy Solutions is uniquely capable in our capacity to both procure cost effective RECs and assist with regulatory compliance maintenance.
Given our in depth Wall St. experience, we have cultivated strategies and relationships that allow us to structure unique financial arrangements that provide tangible cost savings to our clients.
Our finely tuned Process, plus our technology minded approach is designed to save you time and money. Through our partnership with Behalf, we are able to offer financing for your REC transaction costs*. Contact us today and we’ll show you how to reduce your REC compliance costs and plan for your future REC needs. Green Energy Solutions is your single source for Renewable Energy Certificate compliance and voluntary procurement for all deregulated jurisdictions in the United States and abroad.
*Subject to Behalf underwriting and approval criteria
Global Equivalents: How They Work
Other parts of the world have similar products to the Renewable Energy Certificates (RECs): Guarantees of Origin (GOs) in Europe, Green Energy Certificates (GECs) in Japan, Large-Scale Generation Certificates (LGCs) in Australia, and International RECs (I-RECs) and Tradeable Instruments for Global Renewables (TIGRs) in much of the rest of the world. In each case, the product represents the environmental benefits (but not the electricity) associated with one megawatt-hour of renewable energy generated. From wind and solar to hydro and biogas (think cows), RECs, GOs, GECs, I-RECs, LGCs and TIGRs allow companies to support renewable energy no matter where they source their power. They also provide additional revenue which allows renewable energy projects to be cost competitive with traditional sources of energy.
The map below shows countries that are authorized to issue RECs and their global equivalents–meaning renewable energy projects in these countries generate certificates that can be bought and sold separately from the underlying electricity.
◉ GECs (Green Energy Certificates) ◉ GO or GoO (AIB Guarantee of Origin) ◉ I-REC (I-REC standard certificate) ◉ LGCs (Large-scale Generation Certificates) ◉ RECs (Renewable Energy Certificates) ◉ TIGRs (Tradable Instruments for Global Renewables) ◉ TIGRs & I-REC ◉ T-RECs & I-REC ◉ REGO
map updated 07/01/19
RECs are a market-based instrument and an effective way to increase the market demand for renewable energy. Buying RECs demonstrates environmental leadership, sends a signal to the market that you prefer to consume renewable energy, and shows your commitment to changing energy behaviour. RECs also give power producers an extra income source, making it more appealing to build more renewable energy production.
RECs can be used for compliance reporting purposes under various state mandated renewable portfolio standards (RPS) protocols or voluntary Scope 2 reporting. Corporate stakeholders have increasing expectations about reporting the origin of the power consumed. They expect that companies report according to international standards including the CDP reporting and the Greenhouse Gas Protocol. The updated Greenhouse Gas Protocol Scope 2 Guidance features Guarantees of Origin, RECs and I-RECs as mainstream instruments for documenting and tracking electricity consumed from renewable sources.