As more organizations set ambitious clean energy goals, they need a way to track their progress and demonstrate their commitments. This is where renewable energy credits (RECs) come in.
Each REC represents one megawatt-hour (MWh) of electricity generated by a renewable energy source and delivered to the power grid. Renewable energy credits likewise address the non-power benefits of this electricity, for example, carbon emissions that are avoided in the electricity’s lifecycle.
Purchasing renewable energy credits isn’t just a way to purchase green electricity; it’s one of the best ways. Organizations purchase RECs to validate their use of renewable energy and can claim to involve 100% renewable electricity without investing in renewable energy projects, as solar panels. REC purchases can likewise assist organizations with meeting state-mandated clean energy standards. In short, purchasing RECs is a smart, efficient, and effective way to support renewable energy and meet your organization’s green goals.
Most electricity produced in the Singapore comes from various sources, including fossil fuels and low-to zero-carbon energy sources, like wind and solar. At the point when an energy company generates a megawatt-hour of renewable energy, it receives two sources of revenue: the electricity itself and the REC. A REC is an ownership certificate that proves that a megawatt-hour of electricity was generated by a renewable energy resource and added to the power grid.
By purchasing renewable energy credits, organizations are not just meeting their own green goals, they are actively supporting renewable energy generation. This action is part of a larger movement, with a growing number of organizations buying RECs to make claims about the environmental sustainability of their products or services. Your purchase of RECs assists increase with demanding for renewable energy, encouraging more power companies to produce and sell renewable energy. This is a tangible way for your organization to have a significant environmental effect.
The type of REC you purchase is entirely dependent upon you and your organization’s goals and needs. For instance, assuming you’re buying to reduce your scope 2 emissions, you’ll need to ensure that the RECs you purchase are from new projects.
In addition to renewable energy credits from solar and wind, you can likewise purchase RECs from projects that generate electricity from geothermal energy, hydropower without dams, biofuels, or hydrogen fuel cells. Every one of these types of renewable energy sources produces various tiers of RECs, with those from brand-new facilities having the greatest impact on reducing greenhouse gas emissions. These higher-impact RECs are in many cases more expensive than lower-tier RECs. The choice is yours, and it’s a powerful one.