Vagaries Of The Energy Market: A Boom In Renewables Leads To Higher Rates For Co-op
A boom in renewable energy around New England has led to higher rates for a small Vermont utility. The reason has to do with the declining value of an energy commodity know as “renewable energy credits.”
Think of renewable energy credits as one slice of a renewable project that can be sold to another utility. But weāre not talking about the actual electricity the solar or wind plant produces. Maria Fischer, an economics analyst with the state Department of Public Service, explained how they work:
āWhen energy is generated by a renewable resource, it generates a megawatt hour of energy but also an environmental attribute,ā she said. āAnd that environmental attribute is what we call a REC, or renewable energy credit.ā
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