RECs, TRCs, Green Tags,

ROCs, etc.
RECs: What Are They?

A tool to ‘facilitate markets’ for renewable electricity

RECs represent the environmental attributes of the power produced

from renewable energy projects, and are sold separate from
commodity electricity

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RECs go by many names

Also known as:

– Green tags
– Renewable energy credits/certificates
(RECs)
-Transferable Renewable Certificates (TRCs)
-Tradable Renewable Certificates (TRCs)
-Renewable Obligation certificates (ROCs, UK only)

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Why RECs?
• Overcome geographic and physical
constraints
• Reduce transaction costs, improve market
functioning/efficiency

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• Short REC video:

• https://www.youtube.com/watch?v=tXiQYx
d1a4o

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RE developer perspective

Source: K. Cory, NREL 43

The REC market today
• Chaotic: rules, products, vendors, prices,
all in flux
• Two separate markets: compliance (RPS-
driven) and voluntary

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Compliance markets

Most state RPSs allow or require

the use of RECs to show compliance

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Compliance Markets
• SREC Trading example:

• http://www.srectrade.com/blog/

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Voluntary market:
Driven by voluntary green demand

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Voluntary Markets
• Who’s buying: Large C&I, Govt,
individuals

• Who’s selling:
– Utilities, via their green pricing programs
•
–Retail marketers
• Example: Renewable Choice

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Green consumer perspective

Source: EPA 44
REC retail products

Source: http://apps3.eere.energy.gov/greenpower/markets/certificates.shtml?page=1

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Example of REC retailer
• http://www.renewablechoice.com/business
-sustainability-renewable-energy-wind-
power-carbon-offsets.html

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Voluntary markets: Who sets the
rules?

• No national rule-making body

• State regulators, power pool may have views on
RECs
• Default: generator owns the RECs (unless the
contract states differently)
• Contracts (usually) specify who gets the RECs.

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