Renewable Energy Certificates

Many people all over the world are concerned about “going green” and saving the environment. Although you may know that green energy is better for all living beings, you may not understand Renewable Energy Certificates. In these times, more and more consumers are discovering Renewable Energy Certificates and how they can help lessen the use of fossil fuel-based electricity. The world’s renewable energy production has increased for over thirty years, and it makes up around 13% of the world’s energy supply. Many businesses, governments, and investors are working to make green energy usage increase all over the world.

Renewable Energy CertificateThe United States Environmental Protection Agency (EPA) has formed the Green Power Partnership to encourage the use of natural renewable energy. To put a name on the energy commodities, they have called them Renewable Energy Certificates. These certificates prove that electricity originated from an eligible renewable energy resource, such as geothermal, wind, solar electric, hydropower, landfill to gas, biofuels, biomass, and others. Renewable Energy Certificates represent the property rights to renewable electricity generation. They can be sold, bartered, or traded, and they are sold separately from commodity electricity. Renewable energy is energy produced by regenerative sources, and renewable energy certificates represent the property rights to this energy.

Renewable energy and fossil fuel-based electricity cannot be tracked independently, and this makes it difficult to know the source that produced the electricity. Renewable Energy Certificates help differentiate green fuel from fossil fuel-based electricity. The Renewable Energy Certificates represent the right to claim the renewable generation source, and they are tracked through Renewable Energy Certificate tracking systems. Only one buyer can claim each 1,000 kilowatt-hour of renewable electric generation. One Renewable Energy Certificate is awarded to a green energy provider, such as a wind farm, for every 1,000 kilowatt-hours of electricity that it produces. About 800 kilowatt-hours of electricity are used by the average residential consumer, so green energy can provide electricity for many homes. Each Renewable Energy Certificate is given a unique number to ensure that it is only used one time. An electrical grid is used to feed the energy into it, and its Renewable Energy Certificate is then eligible to be sold.

In order to use green energy through Renewable Energy Certificates, individuals and businesses maintain their current electricity supplier. These consumers may buy Renewable Energy Certificates separately from their electric company. Electric supplies to a home or business remain the same, except that part of the electricity originates from green sources, or energy produced without polluting fossil fuel-based electricity. The more Renewable Energy Certificates that are purchased in the U.S. means that more green electricity is placed into an electrical grid.

When Renewable Energy Certificates are purchased, renewable energy plants are built with green electricity generators. The electricity generated is sold at market price and is delivered to the grid in the generator’s area, and at the same time, a certificate is sold for every block of electricity delivered. It costs more money to produce green electricity, but profits from the sale of these certificates helps green generators stay in business. One of the ways that green generators help the environment is that each kilowatt-hour that they deliver displaces a kilowatt-hour from fossil fuel-based energy. This means that as more green electricity is produced, more fossil fuel-based energy is pushed out of the grid, resulting in cleaner air for everyone. If most American consumers purchase Renewable Energy Certificates, they will eventually drive out the polluting generators that require products from other countries, and this will also result in greater energy independence for the United States. Renewable Energy Certificates are a good investment for clean air and a healthy environment.