Board finds I-RECs do not interfere with Mexican Clean Energy Certificates
The I-REC Standard Board's decision today to once again allow the issuance of Mexican I-RECs means there could be over 4 GW of installed renewable capacity available again to international corporations looking to fulfill their renewable energy commitments in Mexico. The board decided that issuing I-RECs would not interfere with the local clean energy certificate instruments, CELs.
What do international companies need to know about Clean Energy Certificates (CELs)?
- CELs stands for Certificados de Energía Limpia or Clean Energy Certificates. They originate from the Energy Industry Law (Ley de la Industria Eléctrica, LIE), which entered into force on the 11th of August 2014. The Energy Regulatory Commission (CRE) issues CELs to accredit the production of a certain amount of fossil fuel free clean electricity.
- CELs do not apply to all renewable energy produced in Mexico. Clean power projects commissioned after 11th August 2014 have the right to receive CELs for a 20-year period. So-called 'legacy projects' commissioned before that date do not.
- Legacy projects can only receive CELs for: 1) new capacity increases if permitted under the LIE where the amount of CELs issued is limited to the increased electricity output; or 2) power capacity migrated from the old regulation to the new scheme under the LIE. In this case, the CELs are limited to the remaining time period of the old permit.
What are I-RECs and how can they help international companies?
- Companies are increasingly committing to source 100% of their electricity from renewable energy sources. Such commitments not only include the energy consumed in their headquarters but also the consumption of all their operations worldwide, Mexico included.
- I-RECs provide a reliable way to source renewable electricity. The I-REC Standard is an internationally recognized certificate tracking system that enables producers worldwide to generate International Renewable Energy Certificates (I-RECs) for each MWh produced by renewable energy sources. I-RECs can be used by consumers for the accounting of Scope 2 emissions under the CDP or other reporting standards. An important factor in the reliability of the system is the assurance that the positive environmental impacts produced are not being reported by two or more organizations ('double counting').