Renewable Energy Terms

Compliance Period: The period of time for which an emissions source must procure credits to cover all emissions. The Compliance period begins January 1st and ends December 31st of each year.

RECs: A Renewable Energy Credit or REC represents one megawatt hour of renewable energy. RECS may be traded and are used during compliance periods to meet standards.

Rec Account: REC accounts are the where all credits are tracked. When trading, the credits are moved to the counterparty’s REC account. Each year, the REC accounts are frozen so that an appropriate number can be deducted to cover emissions.