S&P Global Launches REC Price Assessments for Brazil-India Turkey

S&P Global Commodity Insights has announced an independent suite of price assessments for International Renewable Energy Certificates (I-RECs) in Brazil, India, and Turkey. The key objective behind the I-RECs is to provide market participants and energy consumers a higher level of transparency in the global market for valuing renewable-origin power generation.

I-RECs certificates are a way for consumers of electricity to have confidence that their power consumption comes from renewable sources. These assessments augment a suite of similar price references offered by S&P Global Commodity Insights for renewable energy certificates in North America and Guarantees of Origin (GOs) in Europe.

S&P Global said that Brazil is the largest I-REC market in Latin America while Turkey and India represent two of the largest markets in Asia.

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Alan Hayes, Head of Energy Transition Pricing for S&P Global Commodity Insights, said, “As the energy transition progresses more energy consumers are looking to I-RECs to meet renewable energy goals or mandates, which in turn is creating a growing demand for assessment and transparency of these certificates globally.”

He added, “The global nature of the energy transition makes extension of such assessments crucial for the progress of the renewable energy markets. We will continue to innovate and expand in the space to meet client needs as the marketplace evolves and grows over time.”

In India, trading in RECs at IEX continued to surge in August, with a  total of 8.51 lacs RECs, an increase of 79 per cent over July, being cleared in the trading session at IEX held on Tuesday, August 30, 2022.

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The REC volume comprised 4.18 lacs non-solar RECs with clearing price at Rs 1,000 per REC.

IEX saidthat increased inventory of solar RECs saw the clearing price reaching floor-level at Rs 1,000 per REC, with 4.32 lacs solar RECs traded during the month.

The Platts Global I-REC price assessments reflect end-of-day renewable-origin power values as determined by buyers and sellers in the spot certificates market. The assessments will be expressed in a variety of currencies per MWh.

Platts I-REC assessments cover the leading renewables technologies of hydro, solar, wind and biomass generation. The vintages assessed cover the most liquid vintages of the previous year and the current year. For example, in calendar year 2022, the I-RECs vintages assessed will be 2021 and 2022.