How do RECs work?
To explain RECs in more detail, consider a hypothetical scenario: “William the Wind Farm Developer” (Will for short) owns a wind farm in a small, rural town in West Virginia that produces 30 MWh of power per year. Once Will’s wind power enters transmission substations – tall, steel structures connected with wires – the power is changed into high voltages to allow for long-distance travel and eventual distribution into people’s homes. At this point, power sourced from Will’s facility is indistinguishable from another 30 megawatt hours of coal or nuclear power. Power can only travel as far as the transmission system allows. That’s where RECs come in. Because RECs can be sold separately from the underlying electricity with which they are associated, Will can sell his 30 RECs to buyers anywhere in his grid or beyond – he doesn’t have to worry about the physical constraints of transporting electricity. Will relies on RECs to prove the economics of his wind farm – RECs help offset the high u
