Part III of a series. Read Part I here, Part II here, and Part IIII here.
The Voluntary Green Market is an alternative to state Renewable Portfolio Standards (RPS) that mandate utilities purchase a certain percentage of their energy from renewable sources. The Voluntary Green Power Market enables all customers, including individuals, small businesses, large corporations, and governments, to choose the purchase of renewable electricity options.
Driven by environmental commitments, consumer expectations, and ESG pressures, these buyers are pushing states and suppliers to expand green offerings. In turn, voluntary demand for green power helps drive renewable energy development, reduces costs, and makes clean energy more accessible and economically viable.
The voluntary Renewable Energy Certificate (REC) market is a crucial tool in the national and global strategies to reduce greenhouse gas (GHG) emissions with an emission-first approach, proving highly efficient by enabling open access to renewable energy, not limited by geographic location.
Unlike rigid state-based sourcing, voluntary REC purchases allow consumers and businesses to support renewable projects nationwide, accelerate decarbonization, and overcome local supply limitations. These purchases, facilitated by retailers on behalf of customers, are critical in driving renewable investments by signaling market demand and providing revenue streams for new projects.
Unfortunately, others are challenging this approach, proposing more restrictive policies that would hinder progress and fracture this effective system. Limiting REC purchases to in-state options risks slowing renewable growth by cutting national demand that drives renewable energy investments and GHG reductions.
If states restrict voluntary REC purchases, state and national clean energy goals may be hindered, as localized supply constraints cannot keep pace with demand, underscoring the importance of maintaining the ability to purchase RECs across state lines.
