Renewable Energy Certificates (RECs)

What is a REC?

Renewable Energy Certificates are a type of Energy Attribute Certificates used in the United States and Canada for both voluntary initiatives and compliance systems.

These certificates are market-based tool that play a crucial role in promoting the development of renewable energy and in achieving sustainability goals.

RECs are integrated into every declaration of renewable energy use in North America (USA and Canada). They are the sole legally recognized instrument to certify and claim the use of clean energy.

Purchasing RECs thus supports the financial backing of the energy transition. Below you can find the map of the tracking systems in the US.

How does the REC system work?

For each megawatt-hour (MWh) of renewable electricity generated and fed into the grid, a REC is issued.
It includes at least the following details:

The energy source used to produce the electricity (solar, wind, hydroelectric, geothermal, biomass…)
The location of the production plant
The type of facility and the technology used.

STEP 1

Renewable energy production

When a renewable energy plant produces electricity, it generates both physical electricity and associated environmental benefits.

STEP 2

REC Issuance

Based on actual data, RECs are issued by the network operator, representing the environmental benefits. They can remain associated with the produced electricity (as part of a Power Purchase Agreement) or be traded separately.

STEP 3

Verification

Each certificate has a unique identifier and contains key information about the production plant, the renewable energy source used, and the date of issuance. The United States has eleven distinct REC trading regions, as shown on this map.

STEP 4

Acquisition

It is possible to acquire RECs from different entities, including Nvalue. Purchasing these certificates grants you the legal right to claim the use of electricity from renewable sources. For end consumers, RECs help achieve their sustainable development goals and comply with standards related to scope 2 greenhouse gas emissions and the RE100 criteria.

STEP 5

Retirement

When you go through Nvalue for the acquisition of RECs, we handle their retirement on your behalf in one of the eleven approved tracking systems, granting you exclusive rights to the environmental benefits.

STEP 6

Certification

Nvalue undergoes an annual audit of its REC transactions in the United States, which are Green-e certified, ensuring flawless traceability and veracity.

Why integrate RECs into your decarbonization journey?

Whether you are an organization committed to sustainable practices, an energy supplier, or an electricity producer, the REC system offers several benefits.

Flexibility
The voluntary use of RECs allows for support of renewable electricity production, without necessarily being tied to a specific renewable energy project.
Tangible commitment
The acquisition of RECs is part of an overall strategy for reducing scope 2 greenhouse gas emissions. It represents a tangible commitment that encourages the generation of electricity from renewable sources over fossil fuels.

How can Nvalue assist you?

With over 15 years of experience in the renewable energy markets and our US based offices, we guide you in implementing a long-term decarbonization strategy through the REC system.

Are you a corporate looking to meet your CSR goals in reducing scope 2 CO2 emissions? Do you want your business to meet the RE100 criteria?

Are you an energy supplier or a renewable energy producer looking to diversify your portfolio by acquiring RECs?

Partner with Nvalue to develop a customized REC portfolio from renewable energy projects that align with your objectives.

Connect with us to discuss your objectives