Category: Glossary news
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What is Price Hedging?
Price hedging in environmental commodities refers to the practice of using financial instruments or strategies to manage or reduce the risk associated with price fluctuations in markets for environmental commodities,…
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What is a Vintage?
Renewable electricity procurement involves the acquisition of energy generated from sustainable sources such as wind, solar, and hydroelectric power. One crucial aspect that significantly influences this process is the concept…
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What is Unit Contingency?
A facility or carbon project experiences unit contingency when it possesses surplus environmental credits or allowances beyond compliance or usage requirements. This surplus could occur due to reduced emissions resulting…
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What is a Renewable Portfolio Standard (RPS)?
A Renewable Portfolio Standard (RPS) is a regulatory policy requiring electric utilities and other retail electric providers to supply a specified minimum percentage (or absolute amount) of customer demand with…
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What is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a contract between two parties, commonly a power producer (such as a renewable energy developer or generator) and a power purchaser (often a utility…
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What is a Virtual Power Purchase Agreement (vPPA)?
Virtual Power Purchase Agreements (vPPAs) are financial contracts used to procure renewable energy between a renewable energy developer (such as a wind or solar farm) and a buyer (such as…
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What are Energy Attribute Certificates (EACs)?
Energy Attribute Certificates (EACs) are a broader term encompassing various types of certificates that verify the environmental attributes of renewable electricity generation. It is the only digital instrument that verifies…
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What is Additionality?
Additionality is the extra benefit or impact gained from a particular action or investment in environmental conservation or sustainability. In the case of carbon offset projects, additionality is crucial.…
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What are Renewable Energy Certificates (RECs)?
Renewable energy certificates (RECs) are a tradable, market-based instrument representing the environmental attributes of electricity generated from renewable sources. When a renewable energy facility generates electricity from a renewable source,…
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What is Renewable Electricity?
Renewable electricity is electrical energy generated from renewable and sustainable energy sources. These sources naturally replenish and hold a notably lower environmental impact than traditional non-renewable sources such as coal,…