Latest Market News

I-REC January-August demand surpasses whole of 2023

  • Spanish Market: Electricity
  • 04/09/24

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

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

03/10/24

Japan to phase out inefficient coal plants by 2030

Japan to phase out inefficient coal plants by 2030

London, 3 October (Argus) — Japan will target a phase-out of inefficient coal plants by 2030, as it continues its energy transition push, although the country is still yet to provide further details on any broader movement away from coal. "By 2030, the inefficient use of coal-fired power will be phased out," Japan's newly appointed environment minister Keiichiro Asao said at a press conference on Wednesday. Asao was appointed after Japan's new prime minister Shigeru Ishiba took office this week. Japan had earlier pledged to phase out "unabated" coal-fired plants by 2035 , or "in a timeline consistent with keeping a limit of a 1.5°C temperature rise within reach, in line with countries' net zero pathways". But inefficient, sub-critical coal plants — with below 40pc efficiency — make up only 22pc of Japan's total fleet, while 25pc is supercritical and 53pc is ultra-supercritical. The sub-critical plants probably produce less of Japan's coal-fired electricity, given the generation margins for them will fall below the majority of gas-fired generation in the merit order. This means Japan's overall coal-fired power generation is likely to be less impacted than the overall change to its coal fleet capacity. Japan has been considered a laggard in green energy transition among its G7 counterparts, but the country's coal demand could decline to some extent as a result of global divestment pressure. But coal is still key to the resource-poor country, as the government sees renewables and nuclear as insufficient to meet rising power demand driven by the growth of data centres needed to enable artificial intelligence. Japan's new government has recently announced that it will be restarting more of its nuclear reactors to help meet its power demand. Utility Shikoku Electric Power reactivated its sole nuclear reactor at Ikata on 29 September, after closing the unit for turnaround since 19 July. But the utility pushed back the restart of the 890MW Ikata No.3 nuclear reactor on Wednesday because of a technical issue during the process of resuming power generation. Japanese thermal coal imports rose by 10pc to 9.25mn t on the year in August, owing to increased deliveries from Australia. But this was 4pc lower than the past five-year August average of 9.6mn t. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico aims for 45pc renewable power by 2030


02/10/24
02/10/24

Mexico aims for 45pc renewable power by 2030

Mexico City, 2 October (Argus) — Mexico will generate 45pc of its electricity from renewable sources by 2030, new President Claudia Sheinbaum has pledged upon taking office in an immediate step-up in energy transition efforts. The government had previously committed to a 43pc share of clean energy, including nuclear and efficient natural gas-fired cogeneration. But Sheinbaum stated during her inauguration on Tuesday that the new goal will be achieved solely through renewable sources, such as solar, wind and hydropower, which will also meet growing electricity demand. In 2023, Mexico generated just 24.3pc of its electricity from clean sources, despite these holding 32pc of installed capacity, according to energy ministry (Sener) data. Low output from hydropower plans contributed to this shortfall. Wind and solar accounted for only 5.9pc and 5.1pc, respectively. Last year, the energy regulator (CRE) approved regulatory changes allowing the government to classify energy produced by natural gas-fired combined-cycle plants as clean. But international standards do not consider gas-fired generation as clean unless the plants use CO2 capture systems. Sheinbaum also pledged to introduce a new energy transition plan soon, to detail investment opportunities and projects in the electricity sector. She confirmed that state power utility CFE will maintain its prominent role, holding at least 54pc of electricity generation capacity. The president announced plans for large-scale rooftop solar panel installations for households with high electricity demand in the summer. She also committed to continuing the Sonora Plan, aimed at boosting solar generation, lithium production and electric vehicle part manufacturing in Sonora. Additionally, Sheinbaum promised to promote domestic lithium extraction technology, build 10 new recycling plants and implement air quality programs in cities like Mexico City, Guadalajara and Monterrey. She reiterated that CFE and state-owned Pemex will remain central to her administration and vowed not to sell their assets, as occurred under previous governments. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico's Sheinbaum to present energy transition plan


01/10/24
01/10/24

Mexico's Sheinbaum to present energy transition plan

New York, 1 October (Argus) — Mexico's new president, Claudia Sheinbaum, will present a plan to attract new investments in the electricity sector and an "ambitious" energy transition strategy. Sheinbaum, Mexico's first female president, ratified the commitment made by former-president Andres Manuel Lopez Obrador of maintaining 54pc of the electricity generation in the hands of state-owned utility CFE and providing "clear rules" for private-sector companies to invest in the remaining 46pc. In her inauguration speech to congress, Sheinbaum said it was in the best interest of all Mexicans to have a strong public company in the electricity sector to provide cheap power to households. She promised that prices for electricity, gasoline and LPG will not rise faster than general inflation. The Mexican congress approved the process to change the constitution to give more power to CFE in prioritizing electricity dispatch over private-sector companies. Sheinbaum also said crude production will not go above 1.8mn b/d during her term, as it is "impossible" to reach the 3mn b/d promised under the 2014 energy reform without harming the environment. The increase in energy demand in Mexico will be met by renewable sources, she said. Among her economic priorities is attracting more international manufacturers to bring their plants to Mexico to take advantage of nearshoring — moving production closer to main markets. Her administration will also continue to implement the controversial bill to overhaul the judicial system passed in the last month . By Edgar Sigler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Groups challenge Montana coal mine expansion


01/10/24
01/10/24

Groups challenge Montana coal mine expansion

Houston, 1 October (Argus) — A number of conservation groups are challenging Montana regulators' approval of a mining expansion at Signal Peak Energy's Bull Mountains coal mine in Montana. Earthjustice filed a complaint for declaratory relief with the Montana 13th Judicial District Court on 27 September, claiming the state Department of Environmental Quality's (DEQ) environmental analysis of Signal Peak's permit application was insufficient. The complaint accuses the Montana DEQ of violating the Montana Environmental Policy Act (MEPA) by inadequately analyzing the mine expansion's potential effects on water supplies and cultural resources. Earthjustice is representing Bull Mountains Land Alliance, Northern Plains Resource Council and the Montana Environmental Information Center in the lawsuit. The environmental assessment and permit amendment approved by the state DEQ in August allows operators of the Bull Mountains mine to access an additional 12.7mn short tons (11.5mn metric tonnes) of recoverable coal. Environmental groups claim the Montana DEQ failed to assess the expansion's "cumulative and secondary impacts […] to water quantity, wildlife, unique resources and cultural and historical sites, greenhouse gas pollution, agriculture, worker safety and the community's inevitable transition from coal mining to other, more sustainable sources of revenue", the environmental groups argue in the lawsuit filed on 27 September. Additionally, DEQ's decision to not prepare an environmental impact statement — which is more comprehensive than an environmental assessment — before permitting the Signal Peak coal mine expansion also violated MEPA because such a statement is required by state agencies if a proposed action is expected to "significantly affect the quality of the human environment", the complaint stated. The Montana DEQ said it does not comment on active litigation. Signal Peak did not respond immediately to a request for comment. Signal Peak applied for the permit amendment on 7 November 2023. That came nine months after the US District Court for the District of Montana vacated a federal agency's approval of a different plan to expand Bull Mountains' mining on federal land after the US 9th Circuit Court of Appeals found fault with the US Office of Surface Mining Reclamation and Enforcement's (OSMRE) environmental assessment of the plan. OSMRE has not yet concluded a revised analysis of that plan. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

OECD's coal power in 2023 falls to half its peak: Ember


01/10/24
01/10/24

OECD's coal power in 2023 falls to half its peak: Ember

Singapore, 1 October (Argus) — The OECD's coal generation fell to just 17pc of its total power generation in 2023, down from 36pc at its peak in 2007, because of rapid growth in solar and wind power, according to think-tank Ember. A third of the 38 OECD countries are now coal-free, according to Ember's report on coal generation in OECD countries published on 1 October. The UK closed its last coal-fired power plant, the Ratcliffe-on-Soar, on 30 September , making it the 14th OECD country to achieve coal-free power. About three-quarters of the OECD nations will be coal-free by 2030. The majority of coal has been replaced by wind and solar power, which increased by 1,723TWh, or eleven-fold, over 2007-23. Only Turkey set a new record-high for coal generation in 2023, indicating it has not yet passed its peak. The country raised the share of coal in its electricity supply to 37pc, overtaking Poland as the second-biggest coal generator in Europe after Germany. There are also a number of countries in the OECD that still rely on coal for more than a quarter of their electricity needs, such as Poland with 61pc of its power mix, Australia with 46pc, the Czech Republic with 40pc and Germany with 27pc. But even countries that have been slower to phase out coal are still planning to reduce its share in their electricity mix, such as Japan, which aims to cut coal generation from 32pc in 2023 to 19pc by 2030, and South Korea, which targets to halve coal from 33pc in 2023 to 17pc in 2030. The drop in coal-fired power generation has also led to a 28pc drop in the OECD's power sector emissions over 2007-23, according to the report, although it did not provide further details on emissions reductions. Countries are boosting renewable electricity to cater to the increase in electricity demand, while reducing fossil fuels. Electricity demand in the OECD rose by just 1pc, so the growth in renewables was able to replace fossil fuels instead of "just meeting new demand," stated the report. But coal-powered generation globally hit a new record in 2023 as the fall in the OECD's coal power was outweighed by increasing coal-fired power in emerging Asian economies. OECD countries should end coal use by 2030 to align with the global warming limit of 1.5°C above pre-industrial levels the Paris Agreement seeks, energy watchdog the IEA and research institute Climate Analytics said. The OECD is working on a "gold standard" for financial institutions as part of the coal transition accelerator initiative, and the standard will provide clear guidelines on creating a robust financing policy or strategy to transition away from coal. By Prethika Nair 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