RECs are a good idea for enabling private entities to subsidize clean power, but in practice can have minor impacts on emissions due to their low costs. It’s time to add location and time matching requirements so they better reflect the marginal cost of decarbonization for the emissions they offset.
>The certificates are also very cheap. The average forward price of a single US renewable energy certificate to be bought in the next calendar year has been under $5 since at least 2022, commodity trader STX Group estimates. Experts have questioned whether this is really enough to help incentivise the development of a new clean power project. Academics and experts at Princeton, Harvard and the Greenhouse Gas Management Institute have shown that buying certificates typically did not drive either a new supply of renewables or a fall in emissions.
!ping ECO
YouLostTheGame on
I really liked this article, properly in depth and good at explaining the complicated mechanics.
Seems like Google’s suggestion of limiting RECs by time and place makes by far the most sense.
I was also shocked to see how little of the US’s grid is powered by renewables.
2 Comments
RECs are a good idea for enabling private entities to subsidize clean power, but in practice can have minor impacts on emissions due to their low costs. It’s time to add location and time matching requirements so they better reflect the marginal cost of decarbonization for the emissions they offset.
>The certificates are also very cheap. The average forward price of a single US renewable energy certificate to be bought in the next calendar year has been under $5 since at least 2022, commodity trader STX Group estimates. Experts have questioned whether this is really enough to help incentivise the development of a new clean power project. Academics and experts at Princeton, Harvard and the Greenhouse Gas Management Institute have shown that buying certificates typically did not drive either a new supply of renewables or a fall in emissions.
!ping ECO
I really liked this article, properly in depth and good at explaining the complicated mechanics.
Seems like Google’s suggestion of limiting RECs by time and place makes by far the most sense.
I was also shocked to see how little of the US’s grid is powered by renewables.