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Renewable Energy Credits
(RECs)
Definition
Tradable certificates that represent the environmental benefits of generating one megawatt-hour (MWh) of electricity from renewable energy sources, such as wind, solar, or biomass. RECs are used to verify and track the amount of renewable energy produced and can be sold or traded separately from the actual electricity. They help promote the use of renewable energy by allowing companies and individuals to offset their carbon footprint and meet renewable energy targets or regulations.
Additional Notes
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