Honda plans to pay renewable energy companies to produce more power to offset its energy use at an electric battery factory to be built in Ohio.
But critics note credits are lightly regulated and not always thoroughly tracked, making their effectiveness difficult to gauge.
“There's more certainty in a long-term contract and a guarantee that you're going to” produce a specific amount of energy, saidHonda has pledged to use VPPAs in its Fayette County facility, although it says the details have not been hashed out. The agreements provide “verification that, without Honda or a customer purchase, that renewable energy may not have been built," he said.
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