14 June 2022
ReNew
Setting ambitious
goals, Indian businesses are following the race to net-zero at a rapid pace.
Since the commercial & industrial sector accounts for 50% of the
electricity consumption globally, integrating an alternative to brown power can
benefit both; the environment and businesses at large. Businesses can unlock
the power of sustainability to replace conventional sources of energy with
solutions that offer higher savings & reliability at the same time.
Following the go green
momentum, investors also now demand more considerations by businesses towards
their environmental, social, and governance (ESG) commitments. This reinforces
asset managers to reevaluate their contribution towards the #ZeroEmission
movement.
The Securities and
Exchange Board of India (SEBI) has also made it mandatory for the Top 1,000
listed companies from FY 2022-23, and voluntary from FY 2020-21 to report on
climate change and other topics. A total of 365 companies have now pledged to
the RE100 initiative committed to 100% renewable electricity, globally.
Businesses, now more
than ever, are committed to achieving net-zero carbon emissions by following
steps like reducing their current energy consumption, transitioning to
renewable energy sources, and, off-setting fossil-fuel-based energy consumption
with the help of energy attribute certificates.
What are energy
attribute certificates?
Obliging to I-REC
standards, energy producers can render their own reliable, clean energy that is
traceable and tradable. I-RECs as an instrument allow businesses to procure
this energy even in the countries that don’t have their own certification
systems. Each I-REC represents proof that 1 MWh of renewable energy has been
produced and takes into account the multiple environmental benefits that are
equivalent to the RE generated via that one certificate by generating a unique
ID for each I-REC. This ID in return tracks the asset that has generated that
RE, enabling the purchaser to cross-check the authenticity and quality of clean
energy generated. Generated from an underlying RE asset, through this process
I-RECs prevent double-counting, double issuing, and false claiming of emissions
reductions at the source.
I-RECS offer companies
and individuals a convenient way to offset their carbon footprint and
transition to green energy by simply claiming the energy that comes from
renewable sources & renewable energy attributes of that electricity. The
end-consumer can avail, redeem or trade the issued I-RECs and benefit from the
same simultaneously.
How do I-RECs benefit
businesses?
On their journey to
become more socially responsible, as businesses transition to conscious usage
of RE, I-RECs come in handy without investing in large-scale generation
projects involving physical setup. Amongst many other advantages that I-RECs
unravel for businesses, some of the key ones include the following.
Who should opt for
I-RECs?
If you fit into any of
the following criteria, I-REC can prove to be an ideal solution for your
business to turn on the #GreenSwitch.
As procurement of RE
continues to become a necessity instead of an option, understanding its
feasibility & benefits to match your business needs become more crucial. To
overcome any hindrances proposed by physical procurement, instruments like
I-REC prove to be much more beneficial and convenient.
India has one of the most ambitious renewable energy programs in the world. With a target to add ~450 GW of renewable energy capacity by 2030, India is looking to meet Paris Climate Accord commitments. While, utility scale projects have seen significant scaling up (backed by access to solar parks, s
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