International Renewable Energy Certificates (IRECs)

What Are International Renewable Energy Certificates?

International Renewable Energy Certificates (IRECs) are a globally recognized standard for tracking renewable energy. By purchasing IRECs, companies can verify the renewable origin of their electricity consumption and report greenhouse gas emissions reductions. 

How Do IRECs Work?

The IREC system, modeled after successful programs in North America and Europe, verifies the renewable origin of electricity. Each IREC represents 1 MWh of renewable energy. By purchasing IRECs, companies can account for their clean energy consumption and claim associated environmental benefits. Once purchased, IRECs are retired in a secure electronic registry. The Greenhouse Gas Protocol Scope 2 Guidance recognizes IRECs as a valid tool for tracking renewable electricity consumption.

How Are IRECs Used in Sustainability Accounting?

When reporting to both voluntary and mandatory environmental disclosure schemes like CDP, RE100 or CSRD, IRECs and other EACs are used to substantiate renewable energy claims. Disclosing businesses need to match their volume of electricity consumption with the same volume of valid IRECs or other EACs to claim to be 100% renewable.

How to Manage Your Portfolio of IRECs with Flexidao

For global companies, managing clean electricity involves tracking consumption, production data, invoices, IRECs/ EACs, and contracts. Spreadsheets may seem like a solution but fall short in providing the oversight needed for global electricity portfolios. Effective data management is essential for accurate billing and compliance with disclosure schemes like RE100 and CDP.

‍Flexidao simplifies IREC management by acting as a “registry of registries”. It integrates with both online and offline registries to consolidate all IRECs and other global EAC data on a single platform. This provides better visibility for organizations managing global electricity portfolios and allows for more effective compliance planning to meet disclosure standards. Flexidao also simplifies REC allocation by automating complex calculations, ensuring optimal, audit-ready results for global clean electricity reporting and compliance with standards like RE100 and CDP.

Find out more