U.S. Department of Energy Energy Efficiency and Renewable Energy

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July 30, 2012
Q.

Can you describe what RECs are and how they work?

A.

Basically, in states with a Renewable Portfolio Standard, regulated utilities subject to the standard must be able to show that a certain percentage of their produced power is from renewable energy  projects. The REC is the way this is tracked, often in MWH. This is also to avoid double counting.

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