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Electricity physically identical.

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• Electricity physically identical.

• RECs created to determine how much renewable energy an electric generator

supplies its end users.

• RECs are the accepted mechanism for tracking generating sources that claim to

provide renewable power.

• Energy from renewable energy generator � REC = green power

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• All grid-tied renewable energy generators produce two products:

1. Energy

2. RECs

• 1 REC is created for each MWh of renewable energy produced.

• Each REC represents a set of environmental attributes

• At the point of generation, both product components (energy and REC) can

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be sold together or separately, as a bundled or unbundled product.

• Left – Bundled

• RECs included with sale of that power

• Right – Unbundled

• RECs sold separately from power

• If the RECs are unbundled and sold separately, then the purchaser of the

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RECs has bought the legal right to the renewable attributes they represent.

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