Renewable Energy Certificates (RECs) are vital to accelerating the global transition toward sustainable energy. As the demand for renewable energy grows, understanding RECs is essential for businesses and individuals who are committed to supporting climate action and reducing their carbon footprints. In this blog, we’ll explore the basics of RECs, how they are tracked and traded, and their crucial role in promoting the renewable energy transition.
RECs represent the environmental attributes of electricity generated from renewable sources such as solar, wind, hydro, biomass, and geothermal energy. Each REC certifies that a specific quantity of renewable energy has been produced and delivered to the grid, displacing an equivalent amount of conventional, fossil-fuel-based electricity.
RECs are tracked through Renewable Energy Certificate registries—centralized platforms that facilitate the issuance, tracking, and management of RECs. These registries ensure transparency and integrity in the renewable energy market by assigning each REC a unique serial number, allowing it to be tracked from generation to retirement.
When renewable energy facilities generate electricity and feed it into the grid, RECs are created. For every megawatt-hour (MWh) of renewable electricity generated, one REC is produced. This REC represents the environmental benefits associated with that MWh, such as reductions in greenhouse gas emissions and other harmful pollutants.
Once created, RECs can be bought, sold, or traded on renewable energy markets. Market participants—including renewable energy developers, utilities, corporations, and environmental organizations—purchase RECs to meet sustainability goals, comply with regulatory requirements, or support renewable energy projects.
RECs serve a variety of purposes, supporting renewable energy growth and climate action in multiple ways. Some of the most common uses include:
As organizations worldwide seek to maximize their impact on renewable energy initiatives and reduce carbon emissions, partnering with an experienced environmental solutions provider becomes essential. AFS Commodities stands at the forefront of this mission, leveraging over a century of expertise in energy and financial markets to offer strategic solutions that facilitate seamless procurement of renewable energy and RECs.
At AFS Commodities, we specialize in procuring high-quality renewable electricity and RECs, enabling businesses to meet their climate action goals efficiently and cost-effectively. Our expert team collaborates with organizations across diverse industries, tailoring renewable energy portfolios to match each client’s specific needs—whether it’s volume, geographic location, or preferred technology.
We have deep experience in various renewable energy markets, including PJM, NEPOOL, ERCOT, and WREGIS. This market knowledge ensures that our clients have access to the most relevant REC solutions to meet their unique sustainability goals and regulatory obligations.
Whether you are looking to offset your energy consumption, comply with renewable energy regulations, or demonstrate your commitment to sustainability, AFS Commodities is here to support you on your journey toward a greener future.
Reach out to our experts today to start achieving your renewable energy and climate action goals with AFS Commodities.