Why is there a system in which the environmental benefits of renewable energy can be sold separately from the electricity?
The system was created to provide greater efficiency and flexibility for buyers and sellers. One key reason for sellers is distance: A renewable energy producer in the middle of nowhere can’t always send electrons to densely populated cities where people might care about renewable energy, but he can sell the environmental attributes of this energy. This allows him to site the facility in the most appropriate place for generating energy and then sell to the most lucrative market for the benefits, free of delivery constraints. Another reason for the seller is time: Energy is not always produced when people need it most, yet when it displaces oil, gas and coal, the environmental benefits provided are just as important. With Renewable Energy Certificates, the generator sells the power to the grid at the moment it is generated but can sell the Certificates a day, month, or year later. This has the advantage of complete efficiency, selling each part of the energy to the easiest and most appr
