I-REC January-August demand surpasses whole of 2023
International renewable energy certificate (I-REC) demand in January-August surpassed consumption in all of 2023, with 20pc more I-RECs redeemed in August compared with the same month last year.
Higher redemptions in Colombia, Malaysia and India last month outpaced lower demand from key buyers Brazil and China.
Global I-REC redemptions totalled 9.9TWh in August, higher than 8.2TWh in August 2023 and broadly steady on the month, according to data from UK-based global registry Evident. A total of around 182TWh was redeemed in January-August this year, surpassing the 176TWh redeemed in all of 2023.
There were 14.2TWh of I-RECs issued in August, up from 12.7TWh in July but below the 14.9TWh a year earlier. The 12-month rolling average of issuances is 25.8TWh.
Latin America
I-REC redemptions in Latin American countries totalled 4.1TWh in August, up from 3.1TWh a year earlier. Colombia accounted for around 65pc of redemptions with 2.65TWh — the highest in at least three years — surpassing Brazil, which accounted for almost 20pc.
Brazilian I-REC demand was around two-thirds lower last month compared with August 2023, with 762GWh redeemed compared with 2.4TWh a year earlier. But the country is still the largest I-REC consumer in 2024 so far, with 41.3TWh redeemed over January-August.
Issuances in Brazil more than halved on the year to 532GWh in August, the lowest since June 2022.
Brazilian 2024 hydropower and wind/solar I-RECs were last assessed at $0.17/MWh and $0.19/MWh, respectively, on 28 August, both steady since the end of July.
I-REC demand was nearly 10 times higher on the year in Chile, where redemptions were at 266GWh last month compared with 29GWh in August 2023. But they declined from both June and July, with almost 700GWh redeemed in each month.
Asia-Pacific
Redemptions in the Asia-Pacific region edged up to 3.6TWh in August from 3.1TWh a year earlier, as a slight decline in Chinese demand was offset by a surge in redemptions in Malaysia.
Redemptions in China were at 2.2TWh last month compared with 2.3TWh in August 2023, although they still accounted for the biggest share in the region at 61pc. Chinese I-REC issuances also declined last month and were at 5TWh, down by 2TWh year-on-year.
There were 1.1TWh of I-RECs redeemed in Malaysia in August, the highest since February and nearly 12 times higher than August 2023. Approximately 8.4TWh have been redeemed in the country so far this year, compared with 9.1TWh in all of 2023. Hydropower comprises the biggest share of redemptions so far in 2024 at 7.1TWh, followed by solar with 1TWh.
The volume of I-REC issued in Malaysia edged down to 623GWh last month from 672GWh in August 2023.
Malaysian current-year hydro I-RECs were assessed at $1.30/MWh throughout August, broadly steady since Argus assessments began in February. Solar I-RECs with 2024 vintage were at $5.60/MWh at the end of last month, up from $5.25/MWh when assessments first launched on 15 February.
South Asia
Redemptions in India continued to rise last month to 854GWh, up from 813GWh in July and 550GWh in August 2023.
I-REC issuances were at 1.1TWh in August, down from 1.17TWh in July but nearly two times above the 576GWh issued in August last year. Earlier this week, the International Tracking Standard Foundation announced that ICX, a wholly-owned subsidiary of Indian Energy Exchange (IEX), has been approved as the country's first local issuer of I-RECs for renewable electricity.
The latest Argus assessments for 2024 Indian hydro and wind/solar I-RECs were $0.50/MWh and $0.65/MWh, respectively, on 29 August, both down by $0.05/MWh on the week after holding steady since the end of July.
Related news posts
EU needs future power grids task force: Ember
EU needs future power grids task force: Ember
London, 18 September (Argus) — The EU must put in place a future grid task force to bring together scattered legislation and directives, so the bloc can better implement its power grid roadmap and integrate renewable capacity, according to UK-based think-tank Ember. Integrating intermittent renewables into the power grid adequately will require substantial upgrades to the power network across the continent. This is a political priority for the EU but responsibility is shared across a number of European governmental bodies, Ember said. Most of the 80 action points laid out in EU policy and legislation are the European Commission's responsibility, but some objectives are overseen by EU distribution system body DSO Entity, European grid operators association Entso-E, energy regulators' agency Acer, the EU's High-Level Forum on European Standardisation, and individual member states. The policy framework is a "positive step", Ember said. But significant grid work and modernisation are needed, which would be best met through a single body that can ensure "timely and effective" delivery, according to Ember. A dedicated task force would centralise policy support and monitoring through a single channel, provide access to financing from the European Investment Bank and European Bank for Reconstruction and Development, and develop a clear roadmap for all actions that are currently in the commission's remit. The need for a roadmap is significant as several of the commission's targets do not have scheduled completion dates, Ember said. The EU must centralise funding access for member states and grid operators to ensure stakeholders can use as much of the funding available to them as possible, according to Ember. Funding is currently underutilised and spread across several financial instruments. In addition to uniting these instruments, the access mechanisms should be streamlined and administrative burdens reduced so that stakeholders of varying sizes can utilise these funds. The EU should provide targeted funding for pilot projects on grid digitalisation, and then create a "technical toolbox" to support the digitalisation of distribution grids. The toolbox would detail best practice approaches, standardisation guidelines and interoperability technologies to ease digitalising the power network. These innovative grid technologies (IGTs) or grid-enhancing technologies (GETs) use existing infrastructure to improve renewable integration while reducing overall investment needs. IGT and GET technologies could improve renewable integration with costly network upgrades by as much as 40pc, according to a study by Latvian grid operator AST. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesian Sumsel 1 coal-fired unit eyes December start
Indonesian Sumsel 1 coal-fired unit eyes December start
Manila, 18 September (Argus) — The first 300MW unit of the 600MW Sumsel 1 mine-mouth coal-fired power plant in Indonesia's south Sumatra province is scheduled to begin commercial operations in December following several years of delays. The plant, which is located in Muara Enim regency, is being developed by China Shenhua Energy and Lion Power Energy, which have 75pc and 25pc respective stakes in the project. Once fully operational it is expected to consume around 2-3mn t/yr of coal. Lion will be responsible for sourcing the coal. The $750mn plant is part of Indonesia's 35GW power generation roadmap developed by the Indonesian government in 2015. The project was contracted to China Shenhua Energy in 2016. The first unit at the plant was originally scheduled for completion by 2020. But land acquisition delays and the Covid-19 pandemic and resulting restrictions on the movement of people and travel bans delayed construction, Lion said. Construction work on the plant structure is now in the final stages and operational testing is expected to begin soon. But hitting the operational target date also depends on the completion of a 275kV high-voltage line that will connect the plant to the grid, state-owned utility PLN said. The 80km transmission line will pass through four districts in south Sumatra. The local government is pushing for the acceleration of the voltage line construction and has instructed the sub-district head and local government offices to provide support for the power line construction, PLN said. Sumsel 1, once fully operational, will operate on a build-own-operate basis with a 25-year power supply contract with PLN, the utility said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK launches global clean power alliance
UK launches global clean power alliance
London, 17 September (Argus) — The UK has announced the formation of an alliance designed to speed up the "clean transition" in developing countries, as well as a renewed focus on increased and reformed climate finance. The alliance, which will be built using a "phased and inclusive approach", aims to accelerate the roll-out of renewables across the globe, UK foreign minister David Lammy said today, highlighting the importance of clean power in decarbonising key sectors such as transport. The alliance is also looking to unlock much more global finance to "close the energy gap by allowing more countries to leap-frog fossil fuels to renewable power systems", Lammy said. Other focus areas for the group will include boosting innovative clean energy deployment and diversifying critical mineral production and supply, Lammy said. The recently elected Labour government has pledged to decarbonise the UK's own power supply by 2030. Climate finance Unlocking "much, much more" climate and nature finance is critical to Lammy's approach to the climate crisis, he said, and the UK will push for an "ambitious" new climate finance goal, known as the NCQG, at November's UN Cop 29 climate conference. The NCQG is the next stage of the $100bn/yr target that developed countries agreed to deliver to developing countries over 2020-25. The UK is examining how the country can deliver its existing climate finance commitments "given the dire financial inheritance from the last government" ahead of its upcoming spending review, Lammy said. Lammy also called for more innovation in development finance, particularly concerning multilateral development banks. The UK supports a capital increase for the International Bank for Reconstruction and Development subject to reforms, Lammy said, while a guarantee for the Asian Development Bank will be laid before the UK parliament next month, which the foreign minister said would "unlock $1.2bn" for developing countries in the region. The UK will also appoint new special representatives for climate change and nature to support its diplomatic work in the areas, Lammy announced today. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Von der Leyen puts forward EU commissioner candidates
Von der Leyen puts forward EU commissioner candidates
Brussels, 17 September (Argus) — European Commission president Ursula von der Leyen today presented candidates for commissioner posts, confirming names put forward for portfolios including climate, energy, agriculture and trade. Von der Leyen — who was confirmed by European Parliament as Commission president on 18 July — has committed to doubling down on climate and energy policy. Her 2024-29 mandate stipulates greenhouse gas emissions cuts of at least 90pc by 2040 compared with 1990. Her commissioners, if appointed, will implement those policies. She is nominating Teresa Ribera to oversee competition policy but also "clean, just and competitive transition" that would include energy, climate, environment and other Green Deal files. Ribera is Spain's deputy prime minister and responsible for the country's ecological transition. Von der Leyen has proposed the current EU climate commissioner Wopke Hoekstra for the portfolio of climate, net-zero and clean growth. Hoekstra, who replaced previous Green Deal commissioner Frans Timmermans , will also be responsible for taxation. Other nominees include former Danish climate minister Dan Jorgensen, up for energy and housing commissioner. Former Swedish minister for EU affairs Jessika Roswall is proposed for a portfolio including environment and circular economy, and Luxembourgish Christophe Hansen, a former member of EU parliament, is proposed as agriculture and food commissioner. Von der Leyen now needs to ensure that candidate-commissioners are approved by parliamentary committees and then by plenary. Hearings will also focus on candidates' abilities to implement policies. "Parliamentary scrutiny will not cut corners," European Parliament president Roberta Metsola said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more