CLIMATE ACTION PLAN - City of Urbana

2.5
URBANA’S ENERGY USE
RECs may be bundled (paired by the electric service provider with grid electricity delivered to the buyer) or unbundled
from electricity as a stand alone product and paired by the buyer with its grid electricity purchase. RECs combined with
plain grid electricity are equivalent to green power purchases from the local utility, no matter where the electricity is
sourced.
Because RECs are not tied to the physical delivery of electrons, organizations can purchase green power from suppliers
other than local utility providers. RECs therefore help overcome a major barrier to renewable facility development - as
the best renewable sources may not be located close to population centers. The sale of RECs allows these more remote
renewable energy facilities to benefit from the support for green power.
Figure 13 shows one possible way in which a REC can be traded and used.
Figure 13. A Possible Renewable Energy Certificate (REC) Transaction Path in a Voluntary Green Power Market
Source: Adapted from Guide to Purchasing Green Power, Office of Air, U.S. E.P.A., March 2010. p. 10
City of Urbana
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