Renewable energy certificates (RECs), also known as “green tags,” are proof that 1 megawatt (MW) of renewable energy was generated and delivered to the regional power pool, and they represent the environmental attributes of the power produced from renewable energy projects. RECs are sold separately from the electricity commodity.
For every unit of renewable energy generated and delivered to the regional power pool, an equivalent amount of renewable energy certificates (RECs) are created representing a tracking mechanism to insure that no two customers pay for the same unit of renewable energy generation. When you sign up for Pure Power, AmerenUE contracts for RECs to match the equivalent of your ongoing electrical needs or the number of Pure Power blocks you elect to purchase. Thus, the more RECs that are sold, the more demand is created for renewable power. As renewable facilities sell out their RECs, demand shifts to bring more renewable energy sources online.
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