I-REC: what are the benefits of clean energy certificates?

Sustainability has already become a strategic agenda for many companies. But how can this topic benefit businesses? How can your company be more sustainable, in practice, with actions that can actually be proven?

The answer lies in turning intention into evidence: reducing impacts, improving processes and being able to demonstrate, with clear criteria, decisions such as the source of the energy consumed.

Throughout this content, the idea is to show how I-REC helps precisely in this verification, connecting energy consumption to renewable generation attributes in a traceable way.

What is the I-REC certificate?

The Renewable Energy Certificates (RECs), or Renewable Energy Certificates, are certificates that attest to the source of the consumed energy, declaring the tracking of the energy from its source to the final customer.

They are audited by a specialized and accredited certifier and can be used to offset the emissions of scope 2 of the GHG Protocol. Each REC equals 1 MWh (one megawatt-hour) consumed.

In practice, this means that the company purchases a quantity of certificates proportional to its consumption (in MWh) over a defined period, to obtain a traceable verification of the renewable origin associated with that consumption.

Who regulates and oversees the certificates?

There are two important bodies that regulate and oversee the certificates. 

I-REC Standard

The first is the I-REC Standard, an international entity that monitors the standardization of certificates and ensures that each certificate is unique (i.e., that there is not more than one certificate issued for the same MWh).
The I-REC Standard also works to ensure the market follows best practices and principles of good governance.

Instituto Totum

The second body is Instituto Totum, responsible for authorizing clean energy generators to issue certificates here in Brazil. Instituto Totum audits the power plants, performing and controlling their registrations on the platform and the issuance of their certificates.

In addition, Instituto Totum presents itself as the local issuing body of I-RECs in Brazil, accredited by the International Tracking Standard Foundation (I-TRACK Foundation).

What is the importance of the I-REC certificate?

This certification is important for tracking the origin of the electricity consumed, which can be done from anywhere in the world.

Since energy distribution in Brazil is part of the National Interconnected System (SIN), where the Brazilian energy mix is stored, it is not possible to “separate on the wire” what is renewable and what is not.

With RECs and the tracking conducted by the issuers, the consumer can verify that the energy consumed indeed originates from sustainable sources.

How to obtain the I-REC certificate?

To obtain the certificates, you first need to check the energy consumption volume over a given period. Since 1 MWh is equivalent to 1 REC, your contracted REC volume should correspond to the energy consumption volume.

Next, contact your supplier. At Serena, we work on two fronts: 

• analog contracting, which can be done via our Commercializer's email; 

• 100% digital contracting, through our Digital Platform.

What are the benefits of the clean energy certificate for your company?

There are many advantages for companies that switch to clean energy consumption. Since the certification has international recognition, RECs can be used to offset the scope 2 emissions of the GHG Protocol, related to electricity consumption.

In addition, RECs allow entities to reinforce their commitment and positioning with socio‑environmental causes. In practical terms, the most relevant benefits usually are:

• Verification of renewable source energy consumption through traceable certificates;

• Offsetting of scope 2 emissions of the GHG Protocol;  

• Strengthening the company's socio‑environmental positioning based on evidence, not just rhetoric;

• Clarity in the bill: 1 REC equals 1 MWh, which simplifies planning and monitoring of the contracted volume over time.

In daily operations, the I-REC functions as proof that the company's energy consumption is associated with renewable generation traceable, which is essential for targets, audits and communication with stakeholders.

To continue your journey on the topic and move from understanding to choosing the ideal partner, also see how to choose the best energy supplier for your company.