Forum discussion

NC-v4 EAc7:Green power and carbon offsets

Green tags and Tradable Renewable Credits (TRCs)?

Can green tags or TRCs can be used to substitute RECs? Also, I am having a hard time understanding the concept of how RECs work. Basically, you purchase an REC and the electricity is being used by another party. Is the consumer who purchased the REC the same person who generated that renewable energy? Meaning lets say that I produce renewable energy and decide not to use it. I would sell that energy in return for an REC? Am I making profit? Also, what does it mean to trade RECs and to retain RECs? Thanks for your help.

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Mon, 10/19/2015 - 19:22

Jen, I am not familiar with TRCs and a Google search didn't help me much, but at least with "green tags," you're using terms that I believe are interchangeable with RECs.We have a good quick explanation of RECs on the LEED 2009 version of this credit. Start there and post back here with questions. Thanks!

Mon, 10/19/2015 - 20:14

TRCs are Tradable Renewable Certificates which are basically the same as Green TAGs and RECs. A REC represents the positive environmental attributes of green power. They are a separate commodity from the power itself and can be traded as such. Who owns the REC is often negotiated between the parties involved in funding the renewable energy project. There are RECs sold into the mandatory market and the price varies widely state to state. The idea is associated with a state's Renewable Portfolio Standard (RPS). Basically the state requires utilities to produce so much green power. The utility can build the renewable system themselves or they can buy the RECs from a system someone else builds one. There are also companies in the system who buy RECs from small systems and aggregate them to sell. The voluntary REC market is regulated by Green-e and these are the RECs which can be used for LEED. Other than Green-e RECs or green TAGs or TRCs must demonstrate equivalency. You can buy RECs, typically from an aggregator. If you build a system you can retain the RECs, in other words you don't sell them.

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