You’re likely aware of the advantages of green power or renewable electricity generated from sources like wind or solar energy.
Renewable electricity production results in zero fossil fuel-based greenhouse gas emissions or other harmful pollutants, making it cleaner than electricity generated by burning coal or natural gas.
However, if you don’t have your own wind turbine or solar panels, how can you access renewable electricity?
By acquiring renewable energy certificates, or RECs, you can buy renewable power and contribute to the expansion of the renewable energy sector. To grasp the mechanics of RECs, it’s beneficial to comprehend the generation and distribution process of electricity.
Sources of Renewable Energy
Electricity is generated by various sources, ranging from fossil fuel power plants to wind farms. This electricity is then transmitted to consumers through a network of transmission and distribution wires, collectively known as the electric power grid.
Within this grid, electricity from diverse sources becomes blended together, making it impossible to pinpoint the precise origin of the electricity you receive.
So how can a consumer like you know that the power you’re using is from renewable sources? That’s where renewable energy certificate come in.
Renewable Energy Certificates (RECs)
Each Renewable Energy Certificate (REC) represents a specific quantity of electricity generated and delivered to the power grid by a renewable source such as wind or solar energy.
Take, for instance, a wind turbine: for every megawatt hour of electricity it generates, the owner of the turbine produces a REC, which can be keep or sold. If you purchase the REC, you become the owner of that renewable source.
RECs enable you to claim that the electricity you consume originates from a renewable resource with minimal or zero emissions. In fact, whenever someone claims to utilize renewable electricity, RECs are involved.
Even if you generate your own renewable power onsite, you are producing your own RECs.
RECs are essential in every renewable energy transaction, offering a reliable way to buy and sell renewable electricity because each REC can be assigned a unique number and monitored.
Similar to how your online bank account keeps track of your transactions, systems are in place to monitor and document every sale of a REC. Once you buy a REC and declare that you're using green power, it can't be sold or used by someone else.
The REC can be retired in the tracking system to prevent someone else from claiming it. We recommend purchasing RECs that are certified and verified. This ensure that your renewable energy originates from a reliable, renewable resource and confirms that what you purchased was actually produced.
Importance of Renewable Energy Certificates (RECs)
Why are RECs so important? Because they are the currency of the renewable energy market. They allow individuals and organizations to choose cleaner energy sources, thereby helping to reduce their carbon footprints.
RECs provide the flexibility to support renewable energy, even if you're unable to generate it yourself or if your local utility doesn't offer green power products.
Without RECs, it would be challenging to confirm that you're using renewable electricity. In the current electricity market, RECs play a significant role. By purchasing RECs, you’re providing revenue to support renewable energy project owners.
When more people buy RECs, these purchases promote the adoption of more renewable energy projects and contribute to reducing greenhouse gas emissions nationwide.
Saxon Renewables
Saxon Renewables offers a range of unbundled RECs options for corporate buyers, with a primary focus on meeting their requirements while maintaining the most cost-effective approach.
For many corporate buyers, especially in Malaysia, procuring RECs, whether bundled or unbundled, is a new endeavour. Saxon Renewables is here to provide support throughout your renewable energy procurement journey, from strategy development to execution.
There are numerous pathways available to help you achieve your renewable energy consumption objectives, and Saxon Renewables serves as your reliable sustainability partner for all your renewable energy needs.
Do not hesitate to reach out to us for further information and guidance on your sustainability journey.