EVgo gets sold. Again. But what are RECs?
[Dec. 23, 2019]
On Dec. 20, 2019, LS Power announced its acquisition of EVgo, one of the powerhouses in the EV charging biz. Founded in late 2010 by NRG Energy, this isn’t the first time EVgo has been sold; in 2016, NRG sold a majority stake in EVgo to Vision Ridge Partners for an undisclosed amount (possibly $50 million) when NRG’s alternative energy division was going through financial woes.
EVgo, along with its major competitor ChargePoint, is one of the big players in on-the-go EV charging networks. That said, the duo’s competition isn’t cutthroat considering in mid 2019 the two partnered in order to expand their networks.
One of EVgo’s claims is that its fast charging network utilizes 100% renewable energy, becoming the first EV charging network in the U.S. to do so. To achieve this, EVgo contracts with energy suppliers and REC partners “to ensure that each gigawatt-hour delivered on its fast charging network financially supports an operating renewable energy generator in the U.S.” So what are RECs?
REC stands for Renewable Energy Certificate (REC). The EPA defines RECs as a market-based method of representing the property rights to the environmental, social, and other non-power attributes of renewable electricity. RECs are issued when a renewable energy source generates one megawatt-hour of electricity. The EPA describes RECs this way:
“Because the physical electricity we receive through the utility grid says nothing of its origin or how it was generated, RECs play an important role in accounting, tracking, and assigning ownership to renewable electricity generation and use. On a shared grid, whether from on-site or off-site resources, RECs are the instrument that electricity consumers must use to substantiate renewable electricity use claims.”
RECs should not to be confused with energy offsets, however, which represent one metric ton of emissions that has been avoided or reduced.
So, in a nutshell, when you charge your EV or plug-in hybrid at an EVgo station (which is under new ownership), you may not be using green energy directly, but you will be funding green energy production through EVgo’s use of RECs.
(Image courtesy of Chevrolet)
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