Question

The concept of 'Renewable Energy Certificates (RECs)' is a mechanism primarily intended to:

• A. Provide a direct subsidy for the installation of renewable energy systems.
• B. Regulate the pricing of renewable energy in the market.
• C. Guarantee a minimum purchase price for all renewable energy produced.
• D. Promote renewable energy generation and help Obligated Entities meet their RPOs.

Answer 1

Answer:

D. Promote renewable energy generation and help Obligated Entities meet their RPOs.

• Promote renewable energy generation and help Obligated Entities meet their RPOs. Explanation: RECs are market-based instruments that allow power producers to sell the 'green' attribute of their power separately from the physical electricity.

• This helps obligated entities (like DISCOMs) meet their Renewable Purchase Obligations (RPOs) by buying the certificates instead of the power itself.