How to Generate International Renewable Energy Certificates (I-RECs)
1 What an I-REC Represents
An International Renewable Energy Certificate is a digital record proving that one megawatt-hour of electricity was produced from an eligible renewable source and fed into the grid. Each certificate carries unique metadata—generation technology, location, date, and registry ID—and can be traded or retired to substantiate Scope 2 market-based reporting under the Greenhouse Gas Protocol.
2 Eligibility Criteria for Projects
- Technology types.
Solar PV, onshore or offshore wind, run-of-river hydro (< 20 MW unless legacy licensed), biomass with clear sustainability chain-of-custody, geothermal, and waste-to-energy installations.
- Commercial operation date.
Must be operational; construction-stage assets cannot issue I-RECs.
- Grid connection.
Generation must be metered at the point of export to a recognised transmission or distribution network.
- Double counting safeguards.
Projects already claiming other energy attribute certificates (e.g., GO, REGO) for the same MWh cannot also issue I-RECs.
3 Step-by-Step Generation Workflow
| Phase |
Key Actions |
Typical Time |
| Registry Onboarding |
Create account on I-REC Standard registry, upload corporate KYC, appoint local issuer where required. |
5–10 business days |
| Project Registration |
Submit technical data—GPS, single-line diagram, capacity, fuel type, grid interconnection agreement. |
10–15 days |
| Independent Validation |
Accredited auditor verifies metering, baseline, and commissioning documents. |
2–4 weeks (can run parallel to registration) |
| Issuance |
Upload monthly meter readings; registry auto-mints 1 I-REC per net MWh. |
3–5 days after data upload |
| Transfer or Retirement |
Certificates can be transferred to buyers or retired against corporate targets; each action is time-stamped and immutable. |
Real-time |
4 Monetising and Using I-RECs
Generators have two primary revenue paths: (i) over-the-counter bilateral sales to corporate offtakers seeking market-based Scope 2 reductions; or (ii) exchange-cleared spot trades via recognised platforms. Price benchmarks vary by country and technology, ranging from USD 0.50/MWh in mature hydro markets to USD 10–12/MWh for new-build solar in emerging grids. Retiring certificates rather than selling them secures Renewable Energy 100 (RE100) compliance and can underpin sustainability-linked loan covenants.
5 Compliance and Data-Quality Considerations
- Maintain raw meter files and calibration certificates for at least five years to satisfy audit trails.
- Track grid emission factors to calculate avoided tCO 2
for voluntary reporting.
- Ensure that residual mix factors are applied to grid-purchased electricity when I-RECs are exported, preventing double environmental claims.
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