Introduction to Renewable Energy Certificates (RECs)
Renewable Energy Certificates (RECs) represent the environmental benefits of generating electricity from renewable sources such as wind, solar, and hydro.
Each certificate is proof that one megawatt-hour (MWh) of electricity was produced from a renewable energy resource.
RECs serve as a key tool in the renewable energy market, allowing organizations and individuals to purchase renewable energy indirectly and enabling power producers to finance and invest in renewable energy projects.
This mechanism supports renewable energy development by providing producers with additional revenue streams and giving buyers a method to reduce their carbon footprint.
Types of RECs in Different Regions
Globally, the nature and structuring of RECs can vary significantly, reflecting regional regulatory frameworks and market mechanisms:
North America
In the U.S. and Canada, RECs are often used to comply with state or provincial regulations requiring a certain percentage of electricity to come from renewable sources. These are sometimes known as green tags or Tradable Renewable Certificates.
Europe
The European market utilizes Guarantees of Origin (GOs), which certify that a given share of energy was produced from renewable sources. These certificates can be traded independently of the physical electricity.
Australia
In Australia, Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs) are used, depending on the size of the renewable energy system.
Latin America
Various countries have their own versions of RECs, often linked to specific renewable energy promotion laws and regulations.
East Asia
a. Japan
a. Utilizes Non-Fossil Certificates that include renewable and nuclear energy sources. Japan also uses Green Energy Certicates and J-Credits (Renewable Energy Generation).
b. South Korea
Features a Korean Renewable Energy Certificate system integrating RECs with electricity purchases.
c. China
Employs the China Green Certificate system to encourage renewable energy generation.
South Asia
a. India
Operates a mature REC market with solar and non-solar certificates, regulated by the Central Electricity Regulatory Commission.
I-REC and TIGR: Leading Certificates in the Asian Market
In Asia, the International Renewable Energy Certificate (I-REC) and Tradable Instrument for Global Renewables (TIGR) are prominent instruments:
International Renewable Energy Certificate (I-REC)
The International Renewable Energy Certificate (I-REC) Standard is administered by the I-REC Standard Foundation, which is based in the Netherlands.
The I-REC Standard provides a global framework for certifying renewable energy generation and consumption, helping to ensure that renewable energy claims are reliably tracked and verified in accordance with local regulations and market requirements.
This system plays a crucial role in enabling energy attribute tracking and providing transparency in renewable energy usage around the world.
Tradable Instruments for Global Renewables (TiGR)
The Tradable Instrument for Global Renewables (TIGR) is an initiative by APX, a company that provides environmental and energy infrastructure solutions.
APX is headquartered in the United States. TIGR itself is a global registry system that was designed to track renewable energy certificates and carbon offset credits, making it easier for businesses and organizations to trade and manage these credits internationally.
The system supports the verification and tracking of renewable energy generation and consumption, contributing to transparency and integrity in the global renewable energy markets.
In a Nutshell
Both I-REC and TIGR help companies in Asia to claim their renewable energy usage and reduce their carbon emissions effectively, supporting sustainability goals and corporate social responsibility initiatives.
Saxon Renewables' Role in Achieving Renewable Energy Targets
Saxon Renewables stands at the forefront of assisting clients in achieving their renewable energy targets.
By facilitating the acquisition and trading of RECs, including I-RECs and TIGRs, Saxon Renewables enables companies to credibly claim their renewable energy use and meet sustainability objectives.
Our services ensure that clients can navigate the complexities of the renewable energy certificate market effectively, making significant strides in their environmental impact and supporting the global transition to a more sustainable energy future.
In conclusion, Renewable Energy Certificates play a pivotal role in promoting the adoption of renewable energy worldwide.
As these certificates evolve and adapt to regional needs and global standards like I-REC and TIGR, organizations like Saxon Renewables are crucial in connecting clients with the means to fulfil their green energy commitments and drive meaningful environmental change.
