Renewable Energy Certificates

<p>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.</p><p>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.</p>