How to Buy I-RECs in Sri Lanka

Companies across the globe have been empowered to reduce their emissions using renewable energy certificates (RECs), such as those supported by the International Renewable Energy Certificates (I-RECs).

Businesses in Sri Lanka can now take advantage of I-RECs to reduce their Scope 2 Emissions. This is one of the simplest ways to take climate action!

This article looks at how to buy I-RECs in Sri Lanka.

What Happens When Power is Purchased in Sri Lanka?

In Sri Lanka, electricity used by companies is mostly drawn from a national grid managed by the Ceylon Electricity Board (CEB).

While Sri Lanka has a strong history of hydropower, the grid is still heavily reliant on fossil fuels to meet demand, especially during dry seasons. Approximately 50% of power generation in Sri Lanka is currently derived from fossil fuel sources, primarily coal and oil (2023).

Source: International Energy Agency / PUCSL

As a result, every MWh that is used by a company results in the emission of greenhouse gases. Nearly 40% of global emissions relate to the generation and use of electricity, and in Sri Lanka, the emissions from the grid can be significant due to the reliance on thermal power plants (coal and oil) to supplement hydropower.

These emissions are termed Scope 2 emissions. Reducing Scope 2 emissions has become a global priority and many companies have committed to achieving Near Term Targets of renewable energy use by 2025 or 2030.

Companies cannot choose to exclusively use renewable energy from the Sri Lankan national grid. The electricity they consume will always be a mix of all generated power, including non-renewable sources.

I-RECs solve this problem.

What are I-RECs?

The I-REC Standard is a global system for tracking the environmental attributes of electricity generated from renewable sources. The tracking is achieved by the use of verified, traceable certificates known as I-RECs.+1

I-RECs monitor the journey of renewable energy from its generation at a power plant to its consumption by the end user. The system for I-RECs operates much like the Guarantees of Origin (GOs) in Europe and Renewable Energy Certificates (RECs) in the United States. While GOs and RECs track energy in their markets, I-RECs offer this capability in many other countries, including Sri Lanka.

How do I-RECs Work?

I-RECs are created for each MWh of renewable energy produced by power plants registered on the I-REC Standard. Businesses can then purchase these I-RECs to ensure that no greenhouse gas has been released in the generation of the electricity they’ve used.

The revenue generated supports the development of new renewable energy projects (such as solar, wind, and mini-hydro), encouraging further reduction of greenhouse gas emissions and benefiting end-consumers.

How do Sri Lankan Companies Benefit from Using I-RECs?

I-RECs are a practical tool used by companies to meet their sustainability goals in relation to emissions reduction. Some of the key benefits for businesses using I-RECs include:

• Reducing an organisation’s carbon footprint (Scope 2 emissions) with an established, accepted, and cost-effective initiative.
• Enabling companies to choose renewable energy despite the fossil-fuel mix of the national grid.
• Achieving sustainability goals in compliance with different environmental company standards, such as Greenhouse Gas Protocols, RE100, SBTi, the Net-Zero Standard, CDP, and others.
• Improving public image, showcasing a commitment to combating climate change to local and international stakeholders.

How to Start Using I-RECs in Sri Lanka

It’s easy for a company in Sri Lanka to start using I-RECs.

Simply calculate your company’s electricity consumption in MWh and purchase an equivalent number of RECs.

Monsoon Carbon can then retire these certificates, with your company’s details attached. An example is provided below:

Though using I-RECs to reduce your carbon emissions is not complex, there are rigorous rules applied to their use that your company should be aware of. These rules determine whether your I-RECs are eligible for counting towards reducing your carbon footprint. Monsoon Carbon can help you to navigate these rules to ensure your claims are valid.

How to Buy I-RECs in Sri Lanka

Monsoon Carbon is a trusted leader providing verified I-RECs in the region. We supply solar, wind, and hydro I-RECs sourced from accredited renewable energy power plants on spot or forward orders.

Contact us to purchase I-RECs for your electricity consumption in Sri Lanka.