Renewable Energy Trends in Vietnam
IREC Registration Support in Vietnam
As part of the transition to clean and renewable energy sources, the International Renewable Energy Certificate (IREC) plays a crucial role in demonstrating and committing to sustainability for businesses. However, the IREC registration process can be complex and challenging for businesses seeking to participate. With a desire to support and provide favorable conditions for businesses in Vietnam, Giant Barb proudly introduces a comprehensive IREC registration service package.
We have written an article about renewable energy certificates. To gain a better understanding of REC and IREC before reading this article, please click on the link below to explore more detailed information: REC and I-REC: Vital Renewable Energy Certificates for Sustainable Commitment and ESG Compliance
Leveraging REC and IREC: A Breakthrough in Using Renewable Energy for Businesses
For businesses in Vietnam, electricity is mainly generated from three primary sources: coal, natural gas, and renewable energy. However, when these sources are integrated into the common power grid, businesses often face challenges in identifying the specific electricity source they are using. This makes sustainable commitment and the use of renewable energy a challenge for business owners.
REC (Renewable Energy Certificate) and IREC (International Renewable Energy Certificate) are two leading solutions to help business owners clearly identify the renewable energy sources they are using. These certificates are designed to monitor and verify the renewable origin of electricity from generation to consumption. By owning and trading IREC, businesses affirm that their systems use electricity from renewable energy sources with low or even zero emissions.
With REC and IREC, business owners not only identify clean and renewable electricity sources but also demonstrate their positive contribution to environmental protection and climate change mitigation. Utilizing renewable energy not only reduces long-term energy costs but also builds a green and sustainable brand image, fulfilling CDP and RE100 reporting requirements based on government mandates. Business owners can possess and trade IREC as a commodity, creating an additional avenue for new investments.
The Carbon Market in Vietnam: An Evolving Landscape
In Vietnam, the IREC market is continuously changing and growing. With a steady increase in investments in renewable energy, IREC certificates are becoming a vital requirement for businesses committed to reducing greenhouse gas emissions and protecting the environment.
As per Decision 01/2022/QD-TTg issued by the Prime Minister, greenhouse gas-emitting facilities are required to conduct greenhouse gas inventories, including:
- Facilities with annual emissions of greenhouse gases equivalent to or exceeding 3,000 tons of CO2.
- Thermal power plants and industrial production facilities with an annual energy consumption of 1,000 tons of oil equivalent (TOE) or more.
- Freight transport businesses with an annual fuel consumption of 1,000 TOE or more.
- Commercial buildings with an annual energy consumption of 1,000 TOE or more.
- Solid waste treatment facilities with an annual operating capacity of 65,000 tons or more.
Understanding the IREC Registration Process:
1. Verification of Renewable Energy Assets:
To initiate the IREC registration process, businesses must undergo the verification of their renewable energy assets. This involves identifying and verifying the renewable energy sources used by the company. Only after ensuring the accuracy and legality of these renewable assets can the registration process proceed.
2. Account and Asset Registration in Evident Registry:
Next, businesses need to create an account and register their renewable energy assets in the Evident Registry. This convenient platform, available at https://evident.app, serves as the centralized database for issuing and tracking RECs. By registering their assets on this platform, businesses gain transparency and credibility, facilitating their participation in the IREC market.
3. Verification and Submission of Generation Data:
Once the account and assets are registered, businesses must provide detailed generation data related to their renewable energy sources. This data is crucial for validating the generation of clean and sustainable electricity. Accurate reporting of this data plays a significant role in achieving a successful IREC certification.
4. Issuance of IREC with Unique Serial Numbers:
After successful verification of generation data, the next step involves issuing IREC certificates. Each certificate is assigned a unique serial number, enabling tracking and validation of its authenticity. The issuance of these certificates is a vital milestone as businesses receive formal recognition for their commitment to using renewable energy.
IREC Journey: From Ordering to Sustainable Commitment
Simplifying the lifecycle process for businesses:
1. Initiating the Request:
The process of obtaining IREC certificates begins with the generation of electricity, and then the business seeks to sell these Renewable Energy Certificates (RECs). At this stage, the business must submit a request for REC issuance to the relevant authorities.
2. Data Verification and REC Allocation:
The submitted data undergoes careful verification by local issuing agencies or national verification bodies. After successful verification, IREC certificates are allocated and deposited into designated accounts as per the business's request.
3. Distribution to Brokers or End Users:
IRECs can be distributed to two main parties: (1) brokers engaging in REC trading and (2) end-users seeking to offset their carbon emissions and demonstrate a commitment to sustainability. This distribution process requires completing commercial agreements to ensure a smooth and transparent transaction process.
4. Redemption and Utilization:
In case (1), IRECs continue to be transferred between parties until the end user purchases the REC. End users wishing to own IREC certificates can directly redeem them on their behalf. Redeemed IRECs signify the end user's utilization of renewable energy and provide verification of their sustainable practices.
IREC Certificates in Vietnam: Comprehensive Support from Giant Barb for Sustainable Growth and Green Image of Businesses
At Giant Barb, we take pride in being a leading provider of REC and IREC services in Vietnam. With a highly experienced team specializing in Green Development and Sustainable Consulting, we are committed to assisting businesses in swiftly and effectively obtaining IREC certificates. Giant Barb will aid in setting up accounts, facilitating IREC transactions, and finding suitable trading partners. We firmly believe that harnessing renewable energy is the key to a sustainable future and helps businesses establish a green and professional image in the market.