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.<br><br>
For every unit of renewable energy generated and delivered to the regional power pool, an equivalent amount of 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, Ameren Missouri 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.<br><br>
New renewable energy sources are being constructed across the United States to meet the demand created for renewable energy. Your purchase of RECs benefits the environment by encouraging greater renewable energy generation and displacing non-renewable generation from the electricity system.<br><br>
RECs are traded daily but the pricing depends on many different variables, including traditional issues of supply and demand, what types of renewable resources apply to individual state compliance requirements, whether the purchase is made under a long-term contract versus on the spot market and the overall geographic origination of the facility. Even within the same geographical area and set technologies you can see a whole range of pricing during a short period of time. For example, Texas, a state with an abundant wind resource, has seen REC pricing below $1 and above $8 for the same product during different periods. On the high end, the Massachusetts market regularly trades in the $60 range. Pure Power focuses our REC sourcing om local facilities. Prices in this region have historically ranged anywhere from $1 to $20 for a Wind REC.<br><br>
All of the RECs supported through Pure Power customers since 2010 have come from the Farmers City Wind project in Missouri under an original agreement that was signed prior to the wind farm coming online. Support of this project will continue to be a priority and additional projects will likely be incorporated as the program grows.
Over 750 utilities offer a renewable energy option similar to Pure Power. Nationwide 860,000 customers subscribe to utility green pricing programs.<br><br>
The voluntary market as a whole has resulted in 4,300 megawatts (MW) of new renewable capacity in 2007. According to the EIA (Energy Information Administration), about 9,000 MW of new renewable energy capacity was installed in the United States between 1997 and the end of 2005; thus, voluntary green power markets provide support for 22% of new renewable energy capacity additions, nationally.
Pure Power is a <a href="http://www.green-e.org/" target="_blank">Green-e Energy Certified®</a> program.<br><br>
Green-e Energy was established by the non-profit Center for Resource Solutions to provide information and an objective standard for consumers to compare renewable energy options and to verify that consumers get what they pay for.<br><br>
When you see the Green-e Energy logo, it means:<br><br>
<li>The renewable energy option contains only new renewable resources;</li><br>
<li>The renewable sources of energy supplying the Pure Power program are independently verified by Green-e Energy, operated by the non-profit Center for Resource Solutions;</li><br>
<li>The purchaser of a Green-e Energy Certified renewable energy certificate is the sole "owner" of the environmental attributes of a specific megawatthour (MWh) of energy added to the grid. Independent verification ensures that no MWh are double-counted.</li><br>
<li>The company offering the certified renewable energy option agrees to abide by the Green-e Energy Code of Conduct and Customer Disclosure Requirements governing its ethical treatment of customers.</li>