The Challenge

When an individual, business or organization becomes interested in buying clean power the first, and most obvious, solution would be to purchase the green power directly. This involves either finding someone producing clean power who sells that power to the same ‘grid’ that your electric service is carried on and arranging to purchase that power from them; or producing the green power on site. These solutions are known as a receiving ‘delivered products’.

However, in most areas it is very hard to find cost-effective ‘delivered products.’ The result is electric consumers having great difficulty purchasing delivered green power solutions. This is particularly the case in urban communities as renewable energy is typically generated in vast open areas away from populous locations.

How CX Energy Can Help - Renewable Energy Credits (REC’S)

A Renewable Energy Credits (REC) is a collaborative solution designed by scientist, environmentalist, regulators and the clean energy industry. RECs are certificates issued by clean power producers that can be certified by independent auditing bodies such as the Center for Resource Solution’s in their Green-e program, among many others, and sold through brokers to end users.

RECs represent units of power such as kilowatt hours or megawatt hours. They are priced like any commodity, but usually based on the difference between the traditional electric supply market reimbursement rate and the green energy production cost. Recently commodity trading forces have begun to appreciate the value of these instruments, driving up cost, and enticing additional renewable supplies to be produced.

By purchasing a REC you are allowing clean power producers to enter the competitive marketplace without operating at a loss. Regulations require that the green power produced shall enter the grid first and then carbon based power will be produced to make up the balance of power that is required for the grid. For every green kilowatt or megawatt that you purchase that much less carbon based power is produced. Your purchase has a direct 1:1 correlation to reducing pollution emitted into the atmosphere.

So, by purchasing RECs to cover your energy consumption, you are allowing clean energy to enter the market at a competitive price. You are purchasing all legal rights to the benefits clean energy creates - namely the pollution avoided (carbon dioxide, nitrogen oxides, sulfur dioxide, mercury, and particulate matter) and the economic benefit to rural communities that are often the home to these technologies. You have the right to declare that your power is green power.

Below is an example of how Renewable Energy Credits work: