Surveying the Wreckage: Can RECs 2.0 Save State Renewables?

In the 1990s, as part of a general movement toward reduction of greenhouse gas emissions, states began to develop renewable portfolio standards (RPS), which require load-serving entities to purchase state-mandated amounts of certain generation. Renewable energy certificates (RECs) were created as part of the RPS paradigm, as a way to standardize and track the environmental value of generated renewable energy, provide developers with additional fixed income, and encourage private REC markets.