Singapore-based SP Group, one of the leading names in the energy utility business, has now become the first authorized local issuer of International Renewable Energy Certificates (I-RECs) in the Asia Pacific region.
Companies can now buy or sell green I-RECs on SP Group’s digital REC trading platform. This independent accreditation by the International REC Standard Foundation will authenticate the transactions and assure the consumer of the credibility of each Renewable Energy Certificate (REC) transaction.
RECs are tradable renewable assets that can be sold or traded, and the owner of the REC can claim to have purchased renewable energy. RECs are an excellent way to meet renewable energy targets, and it offers an authentic and credible way to make sure that the power comes from renewable sources. With each MW of green energy, one REC is produced, and it is uniquely numbered and tracked. Last year, nearly 1,000,000 GWh worth of RECs were issued globally.
SP Group has also enhanced its REC trading platform, which provides a one-stop solution for buyers and sellers from across the globe.
Speaking about the enhanced digital REC trading platform, May Liew, head of sustainability and open innovation at SP Group, said, “SP is removing barriers so that small and big companies can achieve their green targets seamlessly. With our one-stop digital trading platform, they not only have the assurance that the electricity they consume comes from renewable sources, but they can also buy and sell RECs without the hassle of dealing with multiple manual processes to issue and verify the RECs.”
Notably, companies that can’t invest in renewable sources on their own can buy RECs in an attempt to offset their carbon emissions, and SP Group’s platform provides them the perfect platform to do so.
Highlighting the benefits of I-REC accreditation, Jared Braslawsky, secretary-general of I-REC, said: “The I-REC Standard empowers consumers to take responsibility not just for the energy they consumed but also for the origin of the energy consumed. With the support of SP Group, there is a neutral and unprejudiced market facilitator who can play a crucial role in strengthening consumers’ sustainability efforts.”
Last year, SP Group launched the world’s first blockchain-based renewable energy certificate marketplaces at the ASEAN Energy Business Forum (AEBF). Blockchain technology helps to enhance the security, integrity, and traceability of each REC transaction. City Developments Limited (CDL) and DBS Bank (DBS) were the first purchasers of RECs through the platform.
In India, RECs are currently traded on two power exchanges, Indian Energy Exchange (IEX) and Power Exchange India Ltd. (PXIL). Currently, RECs are traded once in a month.
Recently, providing relief to renewable energy generators of both solar and non-solar projects, which are a part of the renewable energy certificate mechanism, the CERC issued an order extending the validity of RECs, which were due to expire between April 1, 2019, and October 31, 2019.
A few months ago, the Central Electricity Regulatory Commission (CERC) ordered the IEX to give wide publicity to Green Term Ahead Market (GTAM) contracts by uploading it on its website and invite comments from all stakeholders and public. The IEX had sought its approval for the introduction of the GTAM (Renewable Energy) contract at the power exchange under the CERC (Power Market) Regulations, 2010.
Meanwhile, in October’s REC trading session, there was an increase in the number of solar and non-solar RECs that were traded compared with the trading activity recorded in September. A total of 99,580 solar RECs were traded cumulatively on the IEX and PXIL.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.