In the late 90s of the twentieth century, a system of renewable energy certificates appeared in the Netherlands as a tool for accounting and tracking the production and consumption of electricity from renewable energy (RE). They were first known as the “green trademark system” and the term “renewable energy certificate” was subsequently coined. This certification applies special mechanisms that support certain power sources, specifically, renewable energy sources. In the article below, PC1 Group will introduce you to information about renewable energy certificates, including what it is, which authority is authorized to license them, how it works, and the type of renewable energy certificate.
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What is a renewable energy certificate?
Essentially, a renewable energy certificate is a way to track and claim not only the amount of renewable energy generated and sold but also the positive environmental attributes associated with that energy. For every megawatt-hour (MWh) of renewable electricity generated and sold to the market, one REC is generated. It typically includes information about the type of renewable resource and its location, a label by the date it was created, the source’s emissions profile, and a unique identification number.
Which agencies or organizations issue renewable energy certificates?
Green-e, a non-profit organization established by the Center for Resource Solutions, will certify renewable energy certificates to ensure that they are properly accounted for and that there are no accidents of double counting. It is recommended that companies only purchase certificates certified by Green-e to ensure there is no problem making claims in sustainability reports.
How does a renewable energy certificate work?
Most renewable energy power producers participate in the REC tracking system, and they are certificate recipients for selling electricity in the competitive wholesale electricity market. Those manufacturers can then freely transfer the REC they receive to another agency or organization.
Types of renewable energy certificates
There are two types of green certificates that can be purchased including attached green energy certificates and separate green energy certificates. Although they and electricity are produced concurrently, these two “products” are separable and represent different revenue streams for project developers.
An energy certificate is sold with the electricity it authenticates called REC attached. This certification usually comes from newly built projects so developers get financing and build the project. They must show guaranteed revenue streams for projected energy. Buying the attached REC for an unbuilt project, the company will have to issue an “additional” statement. This means the investment has directly added new, low-cost renewables to the grid and replaced high-cost fossil energy.
Separate RECs, on the other hand, cannot be supplemented because they are not tied to the underlying authority. The supply of attached green certificates has outstripped the demand which has reduced the cost of the loose green certificate. Companies can still purchase separate green certificates to achieve sustainability goals. However, this will not have a positive impact on the environment as new renewable energy generation does not occur. This only represents a reshuffle of the existing renewable energy supply on the market.
PC1 Group has obtained a renewable energy certificate
With a wealth of experience and a high level of expertise, PC1 Group has become a pioneer in the field of renewable energy and has obtained renewable energy certification. The company has strengths in the construction of large-scale solar power plant projects, receiving the trust and appreciation of customers and investors. Not only providing adequate equipment and techniques, but PC1 also owns highly qualified construction human resources, ensuring the works are constructed on schedule and according to technical standards.
Therefore, when cooperating with PC1, customers will experience the best incentives for solutions from design, equipment supply, installation, and operation to maintenance. In addition, PC1 is always committed to providing the most effective services, ensuring the construction progress for customers and investors.
If you need advice on the EPC package and our company’s services, please contact PC1 Group immediately to enjoy the best treatment. We are ready to accompany customers until the completion of the project to bring the highest efficiency to the project.
PC1 GROUP JOINT STOCK COMPANY
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- Email: epc@pc1group.vn
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