Skip to main content

OIA Eco Working Group/Social Responsibility Working Group

Go Search
Event Info
Sub Groups
Social Responsibility Working Group
  
OIA Eco Working Group/Social Responsibility Working Group > Glossary Wiki > Renewable Energy Credit (REC)  

Renewable Energy Credit (REC)

A tradeable certificate of proof that one Kwh of electricity has been generated by a renewable source. 

 

Renewable energy that is put into the grid offsets non-renewable energy.

 

Imagine the electric grid is a giant bathtub being filled with electricity from many different faucets. Each faucet is a different generation source, for example, nuclear, fossil fuel, and wind. Every time you turn on a light switch, you drain a little electricity from the tub. Although buying renewable energy does not mean that electricity is being directed straight from the windmill to your home (it is impossible to specifically direct an electron), it does mean that more of the electricity being poured into the grid comes from renewable energy such as emission-free wind farm or from solar, rather than a dirtier generation source such as coal. By buying renewable energy credits you are increasing the amount of pollution-free generated electricity, or pouring clean water into the tub, and decreasing the amount of dirty water poured into the bathtub.

Source
 
Juristiction
Not legally defined 
Issues and Concerns
 
Framework
No 
Last modified at 7/27/2008 3:40 PM  by Eric Brody