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What is a renewable energy certificate (REC) and how does it benefit the environment?

April 26, 2017benefit Certificate Environment REC renewable energy

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What is a renewable energy certificate (REC) and how does it benefit the environment?

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A. A REC is a tradable instrument that represents the environmental attributes of electricity generated from renewable energy. These attributes are separated from the electricity commodity, allowing the attributes and the actual electricity to be traded separately. The additional value of the REC allows the project developer to charge more for the power produced from renewable and environmental sources, since green power costs more than traditional power. This extra value helps the economics of renewable projects, and allows more projects to be developed.