Corporate demand for renewable energy
More renewable energy needs to be produced and consumed to help stop global warming. Much of the demand is driven by an increased sense of urgency among leading international businesses in contributing to combat climate change. By using renewable energy, companies can act on new business opportunities, meet expectations from investors, consumers and authorities, and improve their sustainability ratings. Companies across various industries take charge of their destiny – defining a clear sustainability agenda as critical to their future competitiveness. There are numerous initiatives – many with similar goals of securing access to renewables to power all operations – in all corners of the world. The most far-reaching initiatives are WeMeanBusiness and the RE100. The RE100 initiative was established by The Climate Group and CDP and now has more than 300 members, all having pledged publicly to consume 100% renewable energy. The global initiative is working to massively increase demand for and delivery of renewable energy.
Document and report with Energy Attribute Certificates
Companies can document and report the origin of their energy consumption globally with the following Energy Attribute Certificates (EACs): Guarantees of Origin (GOs) in Europe, RECs in North America and International RECs (I-RECs) in a growing number of countries in Asia, Africa, the Middle East and Latin America.
EACs give power producers an extra income source, making it more appealing to build more renewable energy production.
How does I-REC work?
Similar to a REC certificate and a Guarantee of Origin, each I-REC represents proof that 1 MWh of renewable energy has been produced and includes the environmental benefits this renewable energy has generated. The I-REC registry electronically issues I-RECs based on renewable energy generators’ output.
I-RECs are traded. When a company buys I-RECs as documentation for their electricity consumption, the I-RECs are cancelled in the registry. This single standardised instrument makes it easy to track ownership, verify claims and ensure that I-RECs are only sold once and there is no double counting.
The Greenhouse Gas Protocol (GHG-P) Scope 2 Guidance and CDP recognise I-RECs as the preferred tool to document renewable electricity consumption. It is an effective and recognised tool to reduce a company’s greenhouse gas emissions and improve the sustainability rating.
Corporates buying I-RECs send a signal to the market that they prefer to consume renewable energy and show their commitment to changing energy behaviour. ECOHZ is currently developing a global portfolio of I-REC power plants, with the ambition of providing multinational companies a wide selection of options covering most regions in the world.
How can solar producers in Africa get this extra income from I-RECs?
Solar producers delivering electricity to grid can register their power plant in the I-REC registry. This is an effective way of documenting the origin and has potential to create significant additional value for small and large solar generators. https://www.irecstandard.org/
Article by Tom Lindberg, Managing Director, ECOHZ
ECOHZ offers global renewable energy solutions to businesses, organisations and electricity providers – providing access to renewable electricity from a wide range of sources, regions and qualities. ECOHZ works with ca 20% of RE100 companies committed to 100% renewable electricity. ECOHZ provides various impact solutions such as corporate PPA facilitation, long-term EAC contracts as well as GO² – a solution combining renewable energy purchases with financing of new renewable power generation. Renewable electricity is documented with Guarantees of Origin in Europe, RECs in North America and International RECs (I-RECs) in a growing number of countries in Asia, Africa, the Middle East and Latin America. ECOHZ is among the leading independent suppliers in Europe and has offices in Norway and Switzerland. ECOHZ plays an active role in the current energy transition through its vision of “Changing Energy Behaviour”. ecohz.com
ECOHZ offers global renewable energy solutions from a wide range of sources, regions and qualities to businesses and electricity providers – ecohz.com