What We Do | RECs

A Renewable Energy Certificate, or “REC,” is a tradable instrument that represents the environmental attributes and system benefits of electricity generated from renewable energy sources.

Traditional electricity is generated from fossil fuels. Fossil fuels emit carbon monoxide (CO), carbon dioxide (CO2), sulfur dioxide (SO2), nitrogen oxide (NOx), particulate matter (PM), and volatile organic compounds (VOC). These emissions cause damage to our environment, through acid rain or green house gases that increase global warming, and to our bodies, in turn causing illnesses such as asthma. The damage caused by these emissions also has a financial toll on our healthcare system and our insurance industries, ultimately increasing our cost of living. So in response to the damage that these traditional methods of generating electricity cause, local, state, and federal government often requires electricity distributors to take measures to reduce the amount of fossil fuel generated electricity in their energy mix and increase the amount of renewable energy – this is often referred to as a Renewable Portfolio Standard, or “RPS.”

Electricity distributors can meet their RPS one of two ways. They can either invest in renewable technology directly, or they can choose to purchase the renewable attributes, or RECs, from renewable energy generators.

Because of this second option, the REC market has evolved. In essence, power generated by a renewable energy source can be tracked and verified by a third party and given a certificate of production – the REC. The REC can then be sold on the open market to allow utilities to meet their RPS set by the state, or to industries that are required to off-set their carbon emissions, this is also known as the compliance market; or the REC can be sold to businesses and individuals that wish to reduce their own carbon footprint in the voluntary markets.

These RECs can be sold and traded just like any other tradable instrument and have available value of anywhere from half of a cent per kwh all the way up to 54 cents per kwh. Obviously the 54 cents is at the high end, but typically the REC is sold at 5 cents per kwh for electricity generated from photovoltaic technology.

The Citizenrē Corporation expects to sell its RECs on the compliance market and in the voluntary market. The Company anticipates offering Powur the opportunity to sell RECs as well. The program is currently not being offered, but when it does begin allowing Associates the chance to sell the RECs, it will most likely include the following:

Citizenrē will apply the same commission structure to RECs and is an added service cost to the customer at 2 cents per kwh, or 2.5 cents on the open market.

The open market will typically purchase bulk contracts for a specific vintage; whereas, REnU customers are combined with their rent.

We also have the option of selling forwards at a discount – 1.5 cents per kwh in blocks. If there is a failure to deliver, then purchase of wind RECs is an alternative, discount to next year is another, and finally a simple return of cash.