Project-level financial analyses often conclude that RECs don’t meaningfully affect project finances—but developers tell a different story
In a new report published by CRS, Eric O’Shaughnessy, Ph.D. draws on recent interviews conducted with renewable energy market stakeholders, including four large U.S. renewable energy developers, to examine how renewable energy certificates (RECs) affect real-world project development decisions. Developer Insights on Financial Modeling to Describe Renewable Energy Certificate Impacts shows that commonly used financial models systematically underestimate REC impacts by mischaracterizing REC prices, transaction costs, and revenue risk.
Developers report that RECs routinely help close critical “missing money” gaps that determine whether projects move forward. In many long-term, all-in power deals, REC value is embedded as an implicit price—often representing approximately 5–25% of total project revenues—far higher than benchmark spot-market REC prices typically used in academic modeling. Contrary to prevailing assumptions, developers also note that most REC revenues flow directly to projects, while transaction costs are modest and declining as markets mature.
The report further finds that simplified financial models fail to capture key market dynamics, including bundled power-and-REC contracting, the interdependence of power and REC revenues, and the longer-term, market-stabilizing role of sustained REC demand.
Upcoming Webinars: in support of this research, we’re hosting two accompanying webinars—register below.
2025 Residual Mix Emissions Rate Table Released
CRS published its 2025 Residual Mix Emissions Rate Table, which updates the Green-e® residual mix emissions rate—an emissions rate that is adjusted to remove all Green-e® Energy certified sales for each eGRID subregion. These updated rates can be used for Scope 2 emissions calculations where more-accurate information about purchased electricity is not available (e.g., from the user’s supplier).
Response to the Greenhouse Gas Protocol’s First Scope 2 Public Consultation Survey
In response to a public survey earlier this year, CRS urged the Greenhouse Gas Protocol to maintain flexible, market-based accounting rules for Scope 2 emissions that enable consumer-driven renewable energy purchasing. Our response recommends companies be directed to prioritize the use of the most temporally precise data available to them in order to provide a feasible pathway towards more-granular reporting while minimizing reliance on estimated data.
Response to the Greenhouse Gas Protocol’s Electricity-Sector Consequential Methods Public Consultation
CRS’s response to the public consultation supports the development of consequential reporting metrics to supplement Scope 2 reporting while seeking greater clarity on the purpose of these metrics and the activities they would apply to.
Welcome New Green-e® Participants
Green-e® Energy: Adelite Solar LLC, BHE Renewables, LLC, Portland General Electric (PGE), and Summit Ridge Energy
Green-e® Renewable Fuels: U.S. Energy
Learn more about these and other participants in the Green-e® certification program at www.green‑e.org.
Upcoming Events
FEATURED
Rethinking the Impact of RECs: New Insights from Project Developers (Part I)
Online | April 2, 2026 | 11:00 AM PST
Recent academic debate has questioned whether voluntary RECs meaningfully drive new renewable energy development. New insights from renewable energy developers, investors, and market participants—the subject of two new companion papers by Dr. Eric O’Shaughnessy—challenge that view. These insights suggest that RECs play a more important and nuanced role in project finance than is often reflected in academic literature. In Part I of this two-part webinar series, Dr. O’Shaughnessy will present these findings, alongside perspectives from Tom Starrs of EDP Renewables, drawing on decades of experience in renewable energy development. Together, they will explore the gap between academic claims and real-world developer experience.
Speakers
- Dr. Eric O’Shaughnessy, Clean Kilowatts, LLC
- Tom Starrs, EDP Renewables North America
- Todd Jones, Center for Resource Solutions (Moderator)
FEATURED
Rethinking the Impact of RECs: The Economics of RECs and a Market-level Approach to Understanding Impact (Part II)
Online | April 8, 2026 | 11:00 AM PST
Part II of the “Rethinking the Impact of RECs” webinar series builds on insights from developers and market participants to examine voluntary REC markets through the lens of economic theory and market-level data. Drawing on other research by Dr. Eric O’Shaughnessy, the discussion explores how voluntary demand for RECs shapes renewable energy investment and deployment, challenges simplified assumptions about REC impacts, and offers a more comprehensive framework for understanding additionality, causation, and market function.
Todd Jones (Center for Resource Solutions) and Dr. Eric O’Shaughnessy (Clean Kilowatts, LLC) will explore how developer experience, fundamental economic principles, and market-level analysis together provide a more complete picture of how RECs influence renewable energy investment and deployment, and the future role of RECs in the clean energy transition.
FEATURED
Renewable Energy Markets™ Asia 2026
Singapore | 21–22 April, 2026
The annual Renewable Energy Markets (REM)™ Asia conference is a unique event that brings together leading industry players throughout Asian renewable energy markets to meet, network, learn, and plan for the future of the region. The renewable energy landscape in Asia is moving faster than ever, and no other conference offers a greater advantage for those who build, buy, and market clean energy than the REM™ Asia conference. Decision-makers from around the world meet for two days of in-depth conversations, panel discussions, and targeted small group meetings focused on providing the latest information and strategies for those leading the region’s clean-energy transition.
FEATURED
Renewable Energy Markets™ 2026
Washington, DC | September 1–3, 2026
Since 1996, Renewable Energy Markets™ (REM™) has been the leading conference for the clean energy marketplace, and is attended by leaders from federal and state governments, large corporate purchasers, the nation’s leading utilities and electricity generators, and marketers from around the world. Join us for one day of pre-conference workshops and two days of sessions focused on the states, businesses, organizations, and households that choose clean, renewable electricity every day
2026 North American Carbon World (NACW)
San Diego, CA | March 31–April 2, 2026
The 23rd North American Carbon World (NACW) conference will be presented March 31-April 2, 2026 at the Manchester Grand Hyatt in San Diego, California. As North America’s flagship carbon conference, NACW is the must-attend event for carbon market and climate policy thought leaders looking to gain actionable insights into policy shifts and market trends, connect with changemakers working to grow and strengthen carbon markets, and accelerate climate action with integrity and ambition. NACW 2026 will offer unparalleled insights into emerging trends, market developments, and policy innovations that are shaping the future of market-based climate solutions. With a focus on collaboration and real-world implementation, the conference will deliver the content, community, and connections needed to succeed in a rapidly evolving carbon economy.
2026 California Clean Energy Summit
San Diego, CA | April 14–16, 2026
Infocast’s California Clean Energy Summit 2026 is the state’s premier conference bringing together the full energy market value chain; policymakers, regulators, utilities, CCAs, developers, financiers, and technology providers, for two and a half days of deep, solution-focused discussion. This is not just a policy conference. It’s where California’s most pressing energy issues are confronted head-on and real strategies are forged. Save 15% with code 260417.
2026 RECS Market Meeting
Prague, Czechia | June 2–3, 2026
The 2026 RECS Market Meeting (RMM) will address these questions and many others. The time for renewables markets is now or never, and the RMM is rising to this challenge with a new venue, a new conference format, and a fresh approach to engaging delegates. Moving the conference to Prague will make it more accessible to more delegates, and we eagerly anticipate welcoming you to a fantastic venue with excellent networking spaces that overlook the historic city.
