REC or I-REC is an energy attribute certificate with related mechanisms and purposes for consumers. However, there are some distinctive characteristics of these two certificates that we must explore to identify which type of mechanisms will benefit our business.
Introduction to REC/I-REC
REC (Renewable Energy Certificate) or I-REC (International Renewable Energy Certificate) are a type of energy attribute certificate (EAC) that represents the environmental attribute associated with the generation of renewable energy.
The generation of one megawatt-hour of renewable energy indicates one REC received. The REC/I-REC system renders the validation and managing mechanism for the consumers towards the sources of energy. In addition, it ensures that energy sources are not produced from non-renewable sources such as coal, natural gas, petroleum, and more.
The differences between REC and I-REC
Despite the REC and I-REC having related processes and purposes, they are distinct in the scope of recognition, geographic coverage, standardization, and applications:
1. Scope of Recognition
REC: REC systems are typically implemented at the national or regional level. They are used to certify and trade renewable energy attributes within a specific jurisdiction or market. The certificates represent the ecological benefits associated with green energy generation. Additionally, they can be used to meet renewable energy targets or goals set by governments or organizations in that specific region.
I-REC: I-RECs are designed to operate internationally. They provide a standardized and globally recognized way to track and verify renewable energy generation and consumption. I-RECs can be used across borders and are not limited to a single country or region. This global recognition makes I-RECs valuable for multinational organizations and businesses operating in multiple countries.
2. Geographic Coverage
REC: REC systems are specific to a particular country or region, such as North America and Europe, and their use is limited to that geographic area. They are not transferable or widely recognized outside of their designated region.
I-REC: I-RECs are available in Asia, Africa, the Middle East, and Latin America. They are acknowledged internationally and are recognized across international borders. They enable more extensive monitoring and trading of characteristics related to renewable energy.
3. Standardization
REC: The certification and trading of clean energy might change depending on the REC programs and criteria in each region. Every nation or region could have specific REC criteria and programs.
I-REC: I-RECs are more uniform and consistent across various nations and areas since they are based on a standardized system and certification procedure. This standardization simplifies cross-border transactions and reporting.
4. Applications
REC: Programs for renewable energy credits (RECs) are frequently employed to meet local and regional renewable energy targets and restrictions. Companies or utilities often require them to prove that a particular amount of their energy is generated from renewable sources.
I-REC: Multinational firms often utilize I-RECs to articulate their dedication to renewable energy worldwide. They can also be applied to supply chain transparency, reporting on sustainability, and achieving business enhancement objectives.
Summary:
In summary, while both REC and I-REC are used to track and promote renewable energy, they have significant differences regarding geography, standardization, and applications. While I-REC is a global standard for determining and trading renewable energy features, REC is restricted to a particular geographical area. The decision between the two depends on the aspirations and geographic reach of the organization or individual involved.
Contact 
