As Indian businesses accelerate their transition toward renewable electricity, Energy Attribute Certificates (EACs) are becoming an important tool for companies looking to procure and document renewable electricity consumption.
For organizations with operations, manufacturing facilities, offices or data centres in India, EACs can form part of a broader renewable-energy procurement strategy alongside on-site generation, power purchase agreements and green open access.
Among the instruments available in India, I-REC(E) has become an important mechanism for tracking the renewable attributes associated with electricity generation and consumption.
What Are Energy Attribute Certificates (EACs)?
An Energy Attribute Certificate (EAC) is a market-based instrument used to track and allocate the attributes associated with electricity generation.
An EAC can provide information about attributes such as:
- The electricity generation source
- Location of the generating facility
- Generation technology
- Quantity of electricity generated
- Other relevant characteristics of the generating facility
For electricity, EAC systems generally operate through a book-and-claim model, allowing the environmental attributes of renewable electricity to be separately tracked from the physical flow of electricity through the grid. The I-TRACK Foundation describes I-REC(E), RECs and Guarantees of Origin as examples of electricity EACs operating on this principle.
In simple terms, a company does not necessarily need to receive physical electricity from a particular solar or wind project in order to acquire the associated renewable electricity attributes through an applicable certificate system.
What Are I-RECs in India?
I-REC(E) stands for International Renewable Energy Certificate for Electricity.
An I-REC(E) is an exchangeable Energy Attribute Certificate representing the attributes of one megawatt-hour (MWh) of electricity generation. The certificate contains information about the generating facility and the electricity production associated with the certificate. I-REC(E) markets operate across numerous countries through the International Attribute Tracking Standard framework.
In India, ICX Private Limited is identified by the I-TRACK Foundation as the accredited issuer for I-REC(E). ICX is a wholly owned subsidiary of the Indian Energy Exchange (IEX). This provides an established framework for registering eligible renewable-energy generation facilities and issuing, transferring and redeeming I-REC(E) certificates.
Why Are Indian Companies Buying I-RECs?
Indian companies increasingly have renewable-electricity requirements that go beyond simply purchasing physical renewable power.
I-RECs can be relevant to organizations with:
1. Global sustainability commitments
Multinational companies often operate renewable-electricity procurement strategies across several countries.
An internationally recognized EAC system can help companies implement a consistent renewable-electricity procurement approach across markets, subject to the requirements of the applicable reporting framework.
The I-TRACK Foundation states that I-REC(E) is recognized within major reporting frameworks including GHG Protocol, CDP and RE100, while noting that companies should check the specific requirements of the reporting framework they use.
2. Scope 2 emissions reporting
Companies reporting market-based Scope 2 emissions may need appropriate contractual instruments and evidence supporting their renewable-electricity claims.
EACs can form part of this procurement strategy, depending on the applicable accounting and reporting requirements.
3. Renewable electricity targets
Companies may have internal targets such as:
- 100% renewable electricity
- Net-zero commitments
- Renewable electricity procurement targets
- RE100 commitments
- Country-level renewable-energy targets
- Supplier sustainability requirements
4. Global procurement requirements
A company operating manufacturing facilities in India and other countries may want a consistent approach to renewable-electricity attribute procurement.
This can make international EAC mechanisms particularly relevant to multinational organizations.
