Green Power Purchasing
Green power can mean two different things in the electric industry. Green power may refer to special utility rates that are based upon electricity sourced from renewable energy assets, which can be provided by the local utility. More commonly, green power refers to the commoditized attributes of renewable electric generation known as Renewable Energy Certificates (RECs), which are sold separately by energy suppliers, generators, or third parties. RECs are also known as Renewable Energy Credits or Renewable Electricity Certificates. One REC is intended to demonstrate that one megawatt-hour (1 MWh) of electric power has been generated by renewable energy. RECs can be bought and traded, but they do not actually represent real, tangible energy.