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What Is a Green Energy Certificate and How Does It Work?
As more people and businesses look for ways to reduce their carbon footprint, renewable energy has become more important than ever. One simple yet powerful way to support clean energy – even if you cannot install solar panels or wind turbines yourself – is through a green energy certificate.
In this article, we’ll explain what a green energy certificate is, how it works, and why green energy certification plays a key role in verifying and promoting renewable electricity generation around the world.
What Is a Green Energy Certificate?
A green energy certificate, also known as a Renewable Energy Certificate (REC), is a document that proves one megawatt-hour (MWh) of electricity has been generated from a renewable energy source, such as solar, wind, or hydro, and delivered to the electricity grid.
When energy producers generate electricity from renewable sources, they receive one certificate for each MWh of clean energy they produce. These certificates can then be sold separately from the electricity itself.
How Do Green Energy Certificates Work?
1. Issuing the Certificates
When a renewable energy plant, such as a wind farm or solar installation, produces electricity, a trusted organisation issues a green energy certificate for every MWh of power fed into the national grid.
2. Electricity Mix
Electricity from all sources – both renewable and non-renewable – is mixed together in the grid. This means you can’t always tell where your electricity comes from. Green energy certificates help solve this problem. They provide a way to track how much electricity in the grid comes from renewable sources.
3. Buying and Selling Certificates
These certificates can be bought and sold in the marketplace. Businesses or individuals can buy certificates to “offset” their energy use, even if their actual power comes from fossil fuels. By purchasing certificates, they are supporting the production of green energy.
Why Are Green Energy Certificates Important?
Verifying Green Electricity
Green energy certificates give consumers proof that the electricity they support or use comes from renewable sources. It brings transparency and helps avoid greenwashing – the act of making misleading claims about being environmentally friendly.
Supporting Renewable Energy Projects
By buying certificates, you provide extra income to renewable energy producers. This helps fund the construction and operation of new solar farms, wind turbines and other green technologies.
Benefits of Green Energy Certificates
For Consumers and Businesses
Green energy certificates are a simple and affordable way to support clean energy. You don’t need to install anything or change your power provider. Businesses can also improve their sustainability credentials by showing they support renewable energy.
Environmental Impact
Certificates help reduce reliance on fossil fuels and encourage cleaner energy production, helping to lower greenhouse gas emissions.
Flexibility Across Markets
Since the certificates are separate from the electricity itself, they can be traded and used in various countries and energy systems. This makes it easier for companies with global operations to meet their sustainability goals.
Challenges to Keep in Mind
Risk of Double Counting
If not tracked properly, the same unit of green energy could be claimed by more than one party. That’s why robust tracking systems are essential.
Market Changes
The price and availability of certificates can vary depending on supply and demand. Government policies and market conditions also affect their value.
Need for Clear Standards
To ensure trust and fairness, certification schemes need to follow strict, internationally recognised standards and be audited regularly.
Green Energy Certificates Around the World
United States
In the U.S., RECs are used in both voluntary and government-regulated (compliance) markets. Consumers and companies buy RECs to show they are using green energy.
Europe
Europe uses something called a Guarantee of Origin (GoO). This works in a similar way, providing proof that electricity comes from renewable sources.
Asia
Countries in Asia are starting to develop their own certification systems to meet growing interest in sustainability and clean energy. As the market grows, standardisation and accessibility are improving.
Asiarecs: Supporting You with Green Energy Certification
At Asiarecs, we are committed to helping individuals and businesses take part in the renewable energy transition through trusted green energy certification. We make it easy to understand and access a green energy certificate, whether you’re just starting or already working towards environmental goals.
By partnering with reliable suppliers and staying up to date with international best practices, we ensure the green energy certificates we offer are credible and beneficial to both the environment and your sustainability efforts.
Ready to support clean energy and make a difference? Contact Asiarecs today to find out how you can contribute to a cleaner, greener future through certified renewable energy solutions.
