Compliance regulated and voluntary Renewable Energy Certificate (REC) markets exist in numerous countries (referred to as Guarantees of Origin, or GOs in Europe). Compliance markets target electric distribution utilities and voluntary markets mainly target large corporations to make voluntary sustainability claims. Some electric power utilities also offer green power pricing programs to customers through a premium on their bills.
RECs were originally developed to track renewable energy production for regulatory compliance with Renewable Portfolio Standards (RPSs) in the United States. These standards require utilities to install and generate certain portions of their total electricity using renewable sources.
Some governments also subsidize renewable energy investment and generation, which can sometimes result in a surplus of RECs in some regions (although this is not the only factor that causes a REC market surplus to occur). Some of these surplus RECs are sold to organizations and individuals, who are told they are avoiding emissions and buying green power.
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