What are renewable energy credits and why should credit trading be used to meet an RES?
A system of tradable renewable energy credits (RECs) provides electricity generators with a simple and flexible means for achieving renewable energy targets. One REC is created for every unit of renewable electricity generated. Renewable energy generators earn RECs and then sell them to those who need them to meet the RES requirements. A national standard with RECs trading will reduce the cost of renewable energy technologies by creating a national market for the most cost-effective renewable energy sources. This approach is very similar in structure to the successful credit-trading program established for sulfur dioxide emissions under the Clean Air Act.
