Renewable Energy Certificates: a patchwork approach to deploying clean technologies

摘要

As demand for energy in the United States will inevitably rise along with a projected population increase of over 100 million by mid-century, new electricity generation will be built throughout the country. With increased scrutiny and mandates for fossil fuel facilities at the state and federal levels, renewable energy generation such as wind, solar and geothermal are picking up pace in the US.The deployment of these low-carbon technologies is incentivized, in part, by state regimes creating a new type of commodity called Renewable Energy Certificates (RECs). These certificates are used for the purpose of establishing compliance with state requirements for power producers to achieve a certain level of electricity generation from renewable resources. The term "REC" is typically referred to as a general concept, and this article explores important nuances in approximately 30 different REC markets across the US and explains how these differences are an impediment to the successful ramping-up of renewable energy technologies.