Power: ARGUS International Renewable Energy Certificate (I-RECs) prices

The ARGUS International Renewable Energy Certificate (I-RECs) price assessments

International Renewable Energy Certificates (I-RECs) are used to label the source of electricity. Argus produces independent price assessments for I-RECs markets.

Advantages for the ARGUS International Renewable Energy Certificate (I-RECs) price assessments

The certificates can be used to technology back electricity supply for industrials, corporates, energy firms, state-owned enterprises and others, contributing to energy transition goals. For example, if an energy-intensive business is looking to increase the share of renewable electricity in its manufacturing processes, it can purchase either directly or through a trading service provider Turkey Solar International Renewable Energy Certificates, to back its power consumption.

The price of the I-REC, or technology-backed component of an energy supply agreement, can be linked or compared to Argus’ independent market assessments to ensure it follows current market trends.

Argus produces independent price assessments for several vintages and technologies (see table below). Argus’ I-REC prices are published on a weekly basis. We publish the price as a best bid, best offer and a midpoint.

Users of the ARGUS International Renewable Energy Certificate (I-RECs) price assessments

Argus’ main objective is to publish fair value price assessments for global commodities markets, so increasing transparency.

Argus’ I-REC prices come at a time when the market is developing, meaning arms-length pricing and transparency are especially important. The I-REC prices have been developed after Argus has already built price methodologies for similar renewable energy certificates, with market-leading coverage since 2019. These include the voluntary European Guarantee of Origin markets, where Argus prices are now commonly used in supply agreements, and US Renewable Energy Certificate (RECs) compliance markets. I-RECs contribute to Argus global coverage of renewable electricity during the energy transition.

• Energy buyers like industrials, manufacturers and corporates can use the prices to index their I-REC-backed supply agreements to a fair market value, so managing exposure
• Energy companies can use the assessments for risk management, market analysis, mark-to-market, negotiating fixed-price agreements and benchmarking renewable-backed supply
• Institutional investors, banks, their utility partners and energy buyers can use the prices to negotiate market-linked, technology-backed components of long-term power contracts known as Power Purchase Agreements (PPAs)
• Investors and utilities can use the prices as model inputs for developing forward-looking views on technology-backed electricity