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Renewable Energy Certificates (RECs)

Renewable Energy Certificates (RECs) represent proof that 1 megawatt-hour (MWh) of electricity was generated from a renewable energy resource and fed into the grid. RECs are a key mechanism for tracking and trading renewable energy generation and usage. When an entity purchases RECs, it can claim to have used renewable energy, even if the actual electrons powering its operations come from conventional sources.

RECs provide a market-based approach to incentivize renewable energy development by allowing consumers to support clean energy generation and reduce their carbon footprint. Businesses can purchase RECs to meet sustainability goals, comply with renewable energy mandates, and enhance their green credentials. However, it's important to ensure that RECs are certified and verifiable to prevent greenwashing.