What are I-RECs?

International Renewable Energy Certificates (I-RECs) have become a common tool for leading corporates to achieve their sustainability goals. They’re also a new source of revenue for renewable electricity producers.

This article takes a look at I-RECs for those new to this type of environmental commodity.

What are I-RECs?

The I-RECs Standard is a global environmental attribute tracking system for electricity generated from renewable sources. Functionally, I-RECs track electricity from a renewable energy power plant where it is generated to its final use by an end consumer, via a registry.

The system for I-RECs is very similar to the systems for Guarantees of Origin (GOs) in Europe and Renewable Energy Certificates (RECs) in the United States. Where GOs and RECs function as a tracking system in their respective markets, I-RECs extends this tracking system to developing countries.

As such, I-RECs provides a suitable standard for countries in Asia, Africa, the Middle East and Central and South America.

Why is Tracking of Renewable Electricity Useful?

In an ideal world, consumers should be able to purchase renewable electricity directly. However, that is not practical in many locations, and national grids tend to provide a mix of renewable and non-renewable electricity.

I-RECs enable the “renewable energy attribute” of the electricity generated to be sold separately from the electricity itself. One I-REC is equivalent to one MWhr of renewable energy supplied from a registered RE power plant.

I-RECs allow all electricity users to make a conscious choice to use renewable electricity. By purchasing I-RECs, consumers are able to show that they are consuming renewable electricity and, in doing so, reduce their environmental impact and achieve their sustainability targets.

See this explainer video for an overview of how the system works:

How The International REC Standard Works from The International REC Standard on Vimeo.

Who Administers I-RECs?

The I-REC standard is now governed by the International Tracking Standard Foundation (I-TRACK). The global registry for I-RECs is maintained by Evident.

I-TRACK dates back to 2014, when it was originally known as the I-REC Foundation. This group has designed the I-REC system carefully to facilitate reliable Scope 2 carbon accounting, consistent with various international accounting standards such as the Science Based Targets Initiative and the CDP.

Growth in the Market for I-RECs

The growth in the market for I-RECs has been considerable, as new suppliers of renewable electricity join the scheme and consumers of electricity increase their targets for the verified use of renewable electricity.

There are several important independent documents that cite I-RECs. The updated Greenhouse Gas Protocol Scope 2 Guidance features I-RECS as a mainstream instrument for documenting and tracking electricity consumed from renewable sources. The RE100 is highly influential in setting rules relevant to the use of renewable energy by corporations. This kind of support is part of the reason for I-RECs rapid growth.

As of 2023, I-RECs covers 53 countries about 95% of the international RECs volume. New countries are consistently added to the I-REC standard. Here at Monsoon, we keep a close eye on the addition of new countries to better serve our clients.

From time to time, we publish short market updates, including 2019 and 2020. These updates include the addition of new countries to the scheme.

Want to Know More?

You can read more about the general use of renewable energy certificates here. If you’re ready to add your renewable energy asset to the I-RECs Standard or you’re looking to purchase I-RECs, reach out to us on the contact form below.