Published: 12 July 2023
Renewable energy certificates, or their equivalents, reduce or offset Scope 2 electricity/“greenhouse” gas emissions. However, not all RECs are created equal. Executive leaders must understand the different types of RECs to make risk-informed investment decisions.
Ideally, enterprises would be able to buy 100% renewable electricity from their local grid utility, but most utilities can’t provide sufficient volumes. Demand for renewable energy has and will far outstrip supply, so an enterprise renewable energy strategy that procures additional net new renewable electricity is perceived as higher quality.
The two primary approaches enterprises can adopt in their renewable electricity strategy are (1) buying electricity and renewable energy certificates (or their equivalents) “bundled” or (2) procuring them separately. The latter is the easiest and quickest solution.
Although RECs have an important role in the electricity market and enterprise energy
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