4 Benefits of Businesses Engaging in Renewable Energy Credits (REC)

4 Benefits of Businesses Engaging in Renewable Energy Credits REC

Renewable energy credits (RECs) are a type of certificate that represents the amount of renewable electricity produced and is certified by an independent third party. Businesses can purchase RECs to offset their electricity consumption, thereby contributing to minimizing environmental impact and achieving sustainability goals.

So with the above benefits, what do businesses need to do and what issues should they pay attention to when participating in renewable energy credits?

What are Renewable Energy Credits (RECs)?

Renewable energy credits, also known as I-REC certificates , are a type of certificate that represents the amount of solar power produced and is certified by an independent third party. Businesses can purchase RECs to offset their electricity consumption, thereby contributing to minimizing environmental impact and achieving sustainability goals.

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Each REC represents 1 megawatt hour (MWh) of solar electricity produced. RECs are created when a solar project is built and begins operations. Solar projects must meet certain criteria to be granted RECs, such as using high-efficiency solar panels and not causing environmental pollution.

Businesses can purchase RECs from RECs suppliers or from solar projects directly. After purchasing RECs, businesses can use them to offset their electricity consumption. This means a business can claim that they are using solar power, even if they do not have a solar system installed on site.

4 Benefits for businesses when participating in renewable energy credits

Participating in renewable energy credits brings many benefits to businesses, including:

Minimize impact on the environment

When purchasing RECs, businesses are contributing to supporting renewable energy projects, thereby helping to reduce greenhouse gas emissions and environmental pollution.

Enhance brand image

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The use of renewable electricity demonstrates a business’s commitment to the environment and sustainable development. This can help businesses enhance their brand image and attract customers interested in environmental issues.

Compliance with regulations

Some countries and regions have regulations that require businesses to purchase RECs or use a certain percentage of renewable electricity. Participating in renewable energy credits helps businesses comply with these regulations and avoid penalties.

Cost savings

In some cases, businesses can purchase RECs for less than the cost of developing their own renewable energy projects. This can help businesses save on energy costs.

In short, participating in renewable energy credits brings many benefits to businesses, including minimizing environmental impact, enhancing brand image, complying with regulations and saving costs.

What do Vietnamese businesses need to do to participate in renewable energy credits?

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To participate in renewable energy credits, Vietnamese businesses need to take the following steps:

  1. Learn about renewable energy credits: Businesses need to learn about the concept, benefits and ways to participate in renewable energy credits. Businesses can find information on the websites of the Ministry of Industry and Trade, reputable organizations on renewable energy or RECs suppliers.
  2. Determine the need to purchase RECs: Enterprises need to determine their need to purchase RECs based on annual electricity consumption. Businesses can use the RECs calculator to estimate their needs.
  3. Find RECs suppliers: Businesses can find RECs suppliers through websites or networks of reputable renewable energy organizations.
  4. Purchasing RECs: Businesses can purchase RECs from selected RECs suppliers. After purchasing RECs, businesses will receive a RECs certificate from the supplier.
  5. Offset electricity consumption: Businesses can use RECs to offset their electricity consumption. This means that businesses can claim that they are using renewable electricity, even if they do not have a renewable energy system installed on site.

Notes when participating in renewable energy credits

Participating in renewable energy credits is an effective way for Vietnamese businesses to contribute to minimizing environmental impact and achieving sustainability goals. Carefully understanding the regulations and notes when participating will help businesses choose a reputable supplier and buy RECs at the best price with the following notes:

Choose a reputable RECs supplier

Businesses need to choose a reputable RECs supplier to ensure the quality and origin of RECs. Businesses can refer to RECs suppliers that have been certified by reputable organizations such as IREC (International REC Standard), RECS Origin (RECS Origin Standard) or GREEN-E (Green-e Standard).

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When choosing a RECs supplier, businesses need to pay attention to the following factors to ensure the quality and origin of RECs:

  • Certification: RECs suppliers need to be certified by reputable organizations such as IREC (International REC Standard), RECS Origin (RECS Origin Standard) or GREEN-E (Green-e Standard). These certifications ensure that RECs meet quality and transparency standards.
  • Reputation: Businesses should learn about the reputation of the RECs supplier. Businesses can refer to previous customer reviews or learn about the activities of RECs suppliers.
  • Transparency: Suppliers of RECs need to provide complete information about the origin of the RECs, including the type of renewable energy project, project location, and the amount of renewable electricity produced.

Compare prices of RECs

The price of RECs in Vietnam usually ranges from 100,000 to 200,000 VND/MWh. The price of RECs can vary depending on the type of renewable energy source, the location of the project, and supply and demand conditions in the market.

Supplier

Type of renewable energy source

Price (VND/MWh)

VinaREE

Hydroelectric100.000 – 150.000

VinaREE

Solar150.000 – 200.000
GreenIDHydropower, solar energy, wind energy

120.000 – 180.000

EVN RECsHydropower, solar energy, wind energy

130.000 – 190.000

Businesses should compare RECs prices from many suppliers to choose the best price. Businesses should also note that the price of RECs may change depending on the time of purchase.

Learn about support programs

There are a number of programs to support businesses participating in renewable energy credits in Vietnam. Some popular support programs include:

  • RECs purchase program of the Ministry of Industry and Trade: This program supports businesses in purchasing RECs to compensate for their electricity consumption.
  • RECs purchasing program from non-governmental organizations: Some non-governmental organizations such as WWF (World Wildlife Fund) and The Nature Conservancy also have programs to support businesses in purchasing RECs.

RECs purchasing program of the Ministry of Industry and Trade

The Ministry of Industry and Trade’s RECs purchasing program has been implemented since 2019 to encourage businesses to participate in renewable energy credits. This program supports businesses to buy RECs at a preferential price of 100,000 VND/MWh.

To participate in the program, businesses need to meet the following conditions:

  • Is an enterprise operating in Vietnam.
  • There is a need to buy RECs to compensate for their electricity consumption.

Businesses can register to participate in the program through the website of the Ministry of Industry and Trade.

Program to purchase RECs from non-governmental organizations

Some non-governmental organizations such as WWF (World Wildlife Fund) and The Nature Conservancy also have programs to support businesses in purchasing RECs. These programs often provide RECs price incentives or financial support to businesses.

Businesses can find out more information about support programs of non-governmental organizations on the websites of these organizations.

In addition, businesses can also buy RECs on the market. Businesses can search for reputable RECs suppliers on websites or networks of reputable renewable energy organizations.

Conclude

In this article, VREnergy has helped you clearly understand the benefits of businesses when participating in renewable energy credits. And especially, we have detailed each step to help businesses participate in renewable energy credits.

Surely, every new business accessing renewable energy credits also needs to spend a lot of time to learn thoroughly, because there are many issues that need to be considered. Hope the article is useful to you!