Renewable Energy Certificates

Renewable Energy Certificates (RECs) — called Guarantees of Origin (GOs) in Europe — are tradeable certificates where one REC or GO represents one MWh of electricity generated from a renewable source (wind, solar, hydro, etc.). Organisations purchase RECs to match their electricity consumption with renewable generation, even if the electrons they physically consume come from the grid mix.

RECs are a widely used but increasingly scrutinised tool for renewable energy claims. Critics argue that purchasing RECs from existing renewable capacity does not drive additionality — new renewable generation. More credible approaches include 24/7 matched certificates (matching consumption to generation on an hourly basis) and direct PPAs for new-build renewable projects. The EAC Registry (EU) and WREGIS (US) track REC issuance and retirement.