Learn about Renewable Energy Certificates (RECs), tradable commodities proving electricity was generated from renewable sources. Prepare for the LEED Green Associate Exam.
Table of Contents
Question
Which of the following is a tradable commodity representing proof that a unit of electricity was generated from a renewable source?
A. Tradable Energy Credit (TEC)
B. Renewable Wind Certificate
C. Renewable Energy Certificate
D. Certificate for Innovative Renewables
Answer
C. Renewable Energy Certificate
Explanation
A Renewable Energy Certificate (REC) is a tradable commodity that represents proof that one unit of electricity was generated from a renewable energy source. RECs are used to track and trade renewable energy in the open market, providing an economic incentive for renewable energy generation.
A Renewable Energy Certificate (REC), also known as a Renewable Energy Credit or Green Tag, is a tradable commodity that represents proof that one megawatt-hour (MWh) of electricity was generated from a renewable energy resource, such as solar, wind, geothermal, hydro, or biomass.
When renewable energy is fed into the electrical grid, the generator receives one REC for every MWh produced. The REC can then be sold on the open market as a commodity separate from the power itself.
Purchasing RECs allows consumers to support renewable energy generation and meet regulatory requirements, even if the electricity they actually use comes from a mix of renewable and non-renewable sources on the grid. RECs serve as an important accounting tool to track renewable energy production and provide a mechanism to monetize the environmental attributes of renewables.
The other options listed are not accurate terms:
A) Tradable Energy Credits is not the proper term.
B) Renewable Wind Certificates refer only to wind, while RECs cover all renewable sources.
D) Certificate for Innovative Renewables is not a real term.
So in summary, Renewable Energy Certificates are the tradable instrument that serves as proof of generation of one MWh of renewable electricity. This is an important concept to understand for the LEED Green Associate Exam.
USGBC LEED Green Associate certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the USGBC LEED Green Associate exam and earn USGBC LEED Green Associate certification.