Consider the following statements regarding renewable energy certificates (RECs):

1. They are issued for electricity generated from renewable sources.

2. They help utilities meet renewable purchase obligations.

Which of the above statements is/are correct?

Question

Consider the following statements regarding renewable energy certificates (RECs):

1. They are issued for electricity generated from renewable sources.

2. They help utilities meet renewable purchase obligations.

Which of the above statements is/are correct?

Accepted Answer

**Solution:**

1. Renewable Energy Certificates (RECs) are indeed issued for electricity generated from renewable sources such as solar, wind, biomass, etc. This incentivizes renewable energy generation.

2. RECs help utilities and obligated entities meet their Renewable Purchase Obligations (RPOs) mandated by regulatory authorities. By purchasing RECs, utilities can comply with their RPOs even if they do not directly generate renewable energy.

Thus, both statements are correct.

**Answer:** Both 1 and 2 are correct

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