The Importance of I-REC Certificate in Global Markets and Countries with the Most Certificates

Renewable energy has become one of the most critical issues of our time. For a sustainable future, turning to clean energy sources is no longer a choice, but a necessity. At this point, the I-REC (International Renewable Energy Certificate) system plays an important role in global energy markets. So, what is I-REC and why is it so important?

I-REC is an international certification system that ensures the traceability of electricity generated from renewable energy sources. Each I-REC certificate represents 1 MWh (megawatt hour) of renewable electricity production. This system allows companies and organizations to certify that the electricity they use comes from renewable sources.

I-REC certificates play a critical role in helping companies achieve their sustainability goals and reduce their carbon footprint. Today, consumers and investors expect companies to fulfill their environmental responsibilities. I-REC certifications provide a reliable tool to meet these expectations.

The I-REC market has seen rapid growth in recent years. In 2021, the global I-REC transaction volume exceeded 100 million MWh, and this figure is expected to grow exponentially in the coming years. The Asia-Pacific region in particular is experiencing a significant increase in I-REC demand.

    For Companies:

– Carbon Footprint Reduction: With I-REC certificates, companies can offset emissions from their energy consumption.

– Sustainability Reporting: I-RECs allow companies to present concrete data in their sustainability reports.

– Brand Image: The use of renewable energy strengthens the environmentally friendly image of companies.

– Competitive Advantage: Sustainability-oriented companies stand out in the eyes of customers and investors.

    For Countries:

– Renewable Energy Investments: I-REC demand encourages countries to invest in renewable energy infrastructure.

– International Competitiveness: High I-REC production enables countries to stand out in the clean energy market.

– Climate Goals: I-RECs help countries fulfill international climate commitments such as the Paris Agreement.

1. Production:  Renewable energy facilities produce electricity.

2. Certification: An I-REC certificate is created for every 1 MWh of electricity generated.

3. Trading: Certificates are traded on specialized platforms.

4. Usage: Companies certify their renewable energy use by purchasing certificates.

5. Cancellation: Used certificates are removed from the system, thus preventing double counting.

1. China: As the world’s largest renewable energy producer, it is also the leader in the I-REC market.

2. India: A major player in the I-REC market with a rapidly growing economy and increasing energy demand.

3. Brazil: Latin America’s I-REC leader with strong hydroelectric capacity.

4. Turkey: A rapidly rising country in the I-REC market, especially with its investments in wind and solar energy.

5. Vietnam:** Draws attention with its breakthroughs in solar energy in recent years.

– Europe: I-REC is widely accepted in Europe and implemented in many countries. It is based on the best practices of the European EECS system.

– North America: In this region, I-REC certification is also used by companies wishing to achieve their renewable energy targets.

– Latin America: I-REC stands out as an important certification tool for renewable energy projects in Latin America.

– Asia: In Asian countries, I-REC certification is actively used to promote the use of sustainable energy.

– Turkey: In Turkey, there are many power plants with I-REC certification and this certification ensures the traceability of renewable resources used in electricity generation.

In 2023, a total of 22.3 million MWh of IREC credits were generated in Turkey. In this way, more than 15% of the total amount of renewable energy generated in Turkey was certified with IREC.

Certification Amounts and Breakdown by Sector

 

IREC Credit Amounts Generated in the World by Years (MWh)

 

– Blockchain Technology: Will increase transparency in certificate tracking and reduce transaction costs.

– New Regulations: Regulations such as the European Union’s “Fit for 55” package will increase demand for I-RECs.

– Sectoral Expansion: In addition to electricity, certification systems will be developed in areas such as green hydrogen.

I-REC certificates have become the key to sustainability in global energy markets. The benefits for companies and countries show that this system will become even more important in the future. As renewable energy investments increase and sustainability goals become more ambitious, the growth of the I-REC market seems inevitable. This trend can be considered as a promising step towards a clean future.