What are RECs?
Renewable Energy Certificates (RECs) are tradeable digital certificates that represent transferable proof of the generation of one megawatt-hour (MWh) of energy produced by renewable sources.
Registration and Issuance of International Renewable Energy Certificates (IRECs) for Projects
What are I-RECs?
International Renewable Energy Certificates represent transferrable proof that one MWh of electricity was produced from renewable energy sources and added to the electrical grid.
Who oversees the registration process for buyers and sellers?
What does a buyer get?
Purchasing an I-REC allows the buyer to claim consumption of one MWh of renewable energy. They can be to used to reduce Scope 2 emissions. The I-REC Standard ensures that all RECs are in adherence with major international sustainability standards including the GHGP, CDP, RE100, ISO, SBTi, and others.
What does a seller get?
I-RECs can be a significant source of additional revenue generation.
Are I-RECs re-saleable?
Once a REC has been sold, it cannot be purchased again.
How long are I-RECs valid for? Do they expire/retire?
No, I-RECs do not expire. However, the usability of an I-REC decreases drastically over time, which means it is relatively difficult to sell old I-RECs
Are there any deadlines for the registration process?
May 31, 2022: this is the deadline to request issuance for the period 1 January – 30 June 2021. As such, devices that finalize registration after 31 May 2022 can still request to register for a historical date, but this date is maximum 1 July 2021.
September 30, 2022: This is the deadline to request issuance for the period 1 July 2021 – 31 December 2021. As such, devices that finalize registration after September 30, 2022, can request issuance for 1 January 2022 onwards.
Who is eligible?
Renewable energy projects or subsidiaries.
How often does one register?
First, the company gets registered. Then, the company undergoes a registration process for each of its devices. This registration gets renewed every 5 years.
Is there a set price for these certificates?
The final price per certificate, although affected by the market trends, are negotiated between the buyer and the seller.
Are Carbon Offsets and I-RECs the same?
No. Carbon Offsets represent GHG emissions reductions/avoidance. I-RECs convey use of renewable electricity from a low or zero emissions source.