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What are renewable energy credits and how do they differ from carbon credits?

flag	asked Jan 19 at 9:29 John ♦♦ 250●8

Brian Griffin · Accepted Answer · 2010-01-27 16:57:05Z UTC

Renewable Energy Credits, or Renewable Energy Certificates, as they are formally known, are used in the United States to represent 1 generated megawatt-hour (MWh) of renewable electricity.

The Certificate is proof that the electricity has been produced using an eligible renewable energy resource. Renewable energy sources comprise of: - Solar electric - Wind - Geothermal - Low Impact Hydropower - Biomass, biofuels and landfill to gas - Hydrogen based fuel cells Not all states in the United States currently participate in the program, but Energy Providers in those states that do participate, get a CER for each undevided MWh of 'green energy' they produce and insert on the grid. The CER can then be traded.

Many of the participating states have a mandatory CER policy, in which electricity companies are required to produce a certain percentage of renewable energy out of their entire production. They can choose to produce that energy themselves, or to buy CERs on the open market, to meet their quota.

Seth · Answer 2 · 2010-01-25 12:00:52Z UTC

Renewable energy credits are also known as Green Tags, Renewable Energy Credits, or Renewable Energy Certificates. They are tradable and can be bought and sold to one another. The Renewable Energy Credit is considered proof that 1 Megawatt Hour (MWh) of electricity was created by a renewable energy source.

It is basically a way of purchasing renewable energy in a more "liquid asset" type of form. Only certified agencies can hand out the original Renewable Energy Certificates.

Romaine Alisya · Answer 3 · 2010-01-28 10:23:44Z UTC

Renewable energy tags are nothing but certificates issued to the power companies by a government agency which makes use of the eco-friendly methods to produce electricity.

The ultimate aim is to construct a clean and green planet. The renewable energy credits are also known in the names of green tags and renewable certificates. These credits are essential to reduce the carbon dioxide usage and green gas emission to help us live healthy life.

Consumers who understands the need for green energy will purchase the renewable energy credits without doubt. However the prices of the renewable energy credits vary widely as of other commodities. They are avaialable in many locations.

Source:

http://www.wisegeek.com/what-are-renewable-energy-credits.htm

What are renewable energy credits?

3 Answers