When discussing the purchase or sale of Renewable Energy Certificates (RECs), one frequently encounters the term "registry." But what exactly does a registry do? Today, we will shed light on this intriguing concept and introduce two of the most prominent registries in the market.
A Recap on What is RECs?
Renewable Energy Certificates (RECs) are tradable environmental commodities representing the environmental attributes associated with one megawatt-hour (MWh) of electricity generated from renewable energy sources.
RECs provide proof that electricity was generated from renewable sources, such as solar, wind, hydroelectric, biomass, or geothermal energy.
They serve as a mechanism for tracking and verifying renewable energy production and consumption, facilitating the purchase and sale of renewable energy attributes separately from the physical electricity.
This allows consumers, businesses, and organizations to support renewable energy development and meet sustainability goals by purchasing RECs to offset their carbon footprint or demonstrate renewable energy usage.
Why We Need a Registry?
When it comes to transferring Renewable Energy Certificates (RECs), having a reliable infrastructure is crucial for streamlining the process.
Without these registries, REC markets would lack the essential infrastructure necessary for effective operation.
This absence would hinder progress towards global renewable energy goals, underscoring the indispensable role of registries in advancing sustainable energy initiatives worldwide.
Here are some enhanced key aspects of a registry's role in managing RECs.
Tracking and Documentation
Registries serve as centralized databases for tracking the generation, ownership, and transfer of RECs. They document essential information about each REC, including its country of origin, type of renewable energy source, period of renewable energy generation, and other pertinent details.
Verification and Certification
Registries verify the authenticity and eligibility of RECs to ensure they meet established standards and criteria. This process involves validating the renewable energy generation source, confirming compliance with regulatory requirements, and certifying the environmental attributes of each REC.
Market Transparency
Registries promote transparency by providing accessible and reliable information about REC transactions and market activities. They offer online platforms where market participants can access project information and the number of REC issuances.
Facilitating Trading
Registries facilitate the transfer and retirement of RECs through their online platforms. They enable market participants to conduct transactions securely, efficiently, and transparently, thereby fostering liquidity and market efficiency.
Ensuring Integrity
Registries maintain the integrity and credibility of REC markets by enforcing rules, regulations, and industry standards. They prevent fraud, double-counting, and misrepresentation of REC attributes, thereby safeguarding the integrity of environmental claims.
What is The Difference Between I-REC & TiGR
In this article, we introduce you to two globally recognized registries commonly seen in the Southeast Asian market: I-REC and TiGR.
International Renewable Energy Certificate (I-REC)
In 2014, the International REC (I-REC) Standard was established with a goal: “to monitor and report the use of renewable energy in regions beyond Europe and North America.”
In the absence of existing systems for certifying renewable energy, I-REC emerged as a crucial player Starting with only Turkey, Taiwan, and China, I-REC embarked on its mission to facilitate renewable energy certification in underserved regions.
Today, the I-REC Standard is the primary framework utilized by companies engaging in international REC transactions. Its widespread adoption and standardized approach have led to the issuance of an impressive 199 million RECs in 2022 alone.
With 18 issuers participating in the program, a total of 97 million RECs were redeemed in the same year.
Tradable Instruments for Global Renewables (TiGR)
In 2016, An Xpansiv (APX) introduced the TiGR Registry with the goal of simplifying the tracking and trading of Renewable Energy Certificates (RECs) worldwide. Fast forward to 2023, TiGR has become the second largest REC system globally with an an impressive record of 9.87 million certificates.
A remarkable growth particularly in Indonesia and Singapore was noticed. The year 2022 witnessed a significant milestone, reaching an impressive 3.78 million at the growth rate of 111%.
As of March 31, 2023, Indonesia has firmly established itself as a leader in the TiGR market, having issued a total of 4 million certificates. This accounts to a substantial 40% of the total certificates issued globally.
Despite Singapore facing the renown challenges – “Insufficient Renewable Energy Resources”, the country nailed a record of 1.43 million certificates.
In a Nutshell
Both I-REC and TiGR are recognized by most standards, including one of the most stringent initiatives, RE100, and they serve a common purpose: offering a transparent and dependable mechanism for tracking and reporting renewable energy consumption.
With companies and organizations placing greater emphasis on sustainability and carbon neutrality, the demand for renewable energy certificates such as I-RECs and TiGR is on the rise.
Want to know how to register your RECs? Reach out to us to schedule a consultation with Saxon Renewables
Saxon Renewables
With a presence in seven countries (Singapore, Malaysia, Indonesia, Thailand, Vietnam, Philippines, and Taiwan), Saxon Renewables is well-positioned to enable local businesses to achieve their ‘net zero emissions’ goal by 2050.
We welcome you to contact us for more information and assistance on your solar power purchase agreement.
