When a renewable energy producer generates one megawatt-hour (MWh) of electricity it also creates a Renewable Energy Certificate (REC) that is a confirmation that one MWh of renewable energy has been produced and added to the grid. That REC can then be sold separately from the electricity itself as a representation of the associated environmental benefits provided by clean renewable energy.
The purpose of the REC is to support current renewable projects as well as create demand for additional renewable generation energy in the energy market. Every time REC is purchased it sends a demand signal to the economy that says “We want more clean energy!” The market responds by building more renewables, such as wind and solar, to meet those demands.
Verification ensures that RECs are authentic and not double counted. It ensures that once a REC is retired it cannot be resold. Third party Verification is an important part of making sure the RECs you purchase represent of the benefits they claim to embody. All KMPG RECs are 3rd party Verified.