Renewable Energy Certificates

Renewable Energy Certificates to Demonstrate Compliance by Utility Companies

Renewable energy certificates help to distinguish the mix of electricity produced by traditional fossil fuel-based means and that which is produced by renewable energy means within an energy grid. A renewable energy certificate is to accompany electricity that is produced by a renewable-based electricity generator that is fed to a national grid.

This will help distinguish the ‘green’ energy from the others once it’s already within the system. Renewable energy certificate will be able to convey the benefits of electricity and not the product. The bearer of the certificate will have the full benefits of the electricity which was produce using renewable sources. These certificates are designed to convey actual benefits to its owners.

These certificates can be bartered or traded and the owner can have a claim on a purchases renewable energy. Every REC will have a unique identification number which will ensure that it won’t get a double count.

States within the United Stated are operating within a Renewable Portfolio Standard. Electricity companies within these states must therefore produce a specified amount of energy from renewable energy sources. Utility companies must therefore demonstrate compliance by buying renewable energy certificates.

Green Tag Experiment in Question

The existence of Renewable Energy Certificate in any company will help make the development and construction of alternative energy sources financially viable. In future terms, any developer will be able to point to the consolidated value of the Renewable Energy Certificates. Many corporations and consumers would therefore choose to purchase certificates as proof of their involvement in the movement.

There are a number of networks that verify the certificates to help control the market. An example of verification networks is the Eco-Power Program, who usually refers to the certificates as ‘green tags’ in the market. Examples of qualifying technologies for green tags are hydrogen fuel cells, geothermal, biomass, wind and solar energy technologies.

The concept of renewable energy certificates has been duly criticized as these might not supply any supplement to the system. For instance, there is no paper trail which will confirm that an additional renewable power was the direct result of the REC in voluntary markets where funds from REC sales are given to the generators.

How Make the Most Savings from Renewable Energy Certificates

Volume determines the true power of renewable energy sources. Power from these sources consistently enters the market which could lead to price drop. Furthermore, the market shall dictate that energy production from traditional sources be reduced.

Renewable energy will be more cost effective in comparison to non-renewable energy sources if a larger amount of RECs are purchased. Every green tag corresponds to 1MWh of electricity produced from a certified green energy source.

About Verisae

Verisae helps measure, manage and reduce equipment and energy costs including the related business and environmental impacts of carbon emissions. The Sustainability Resource Planning (“SRP”) software platform improves operational efficiency, protects brand integrity and helps ensure regulatory compliance for distributed enterprises across many industries. Verisae delivers a broad range of sustainability solutions to dozens of clients globally with thousands of daily users including an extended network of third-party suppliers. Verisae’s integrated sustainability platform actively tracks millions of assets across thousands of sites worldwide.

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