A State-Based Approach to Building a Liquid National Market for Renewable Energy Certificates: The REC-EX Model

RECs are the currency driving the growth of renewable energy markets and the sale of RECs from renewable energy generation projects could promise a predictable return. But the existing REC markets in the U.S. sorely lack the liquidity needed to make good on that promise. The author proposes a Renewable Energy Certificate Exchange program rooted in the construction of a national trading platform for RECs in tandem with the execution of a new agreement among the states with REC-based renewable portfolio standards.