I-REC Guide: How I-REC Works Page 2/7 February, 2015
This tracking takes place in the form of a digital statement, or I-REC standard certificate (shortened
to ‘an I-REC’) which is based on one MWh of electricity production from a single, generation facility.
Ownership of this digital statement allows consumers of electricity the ability to claim the attributes
of a particular generating facility and electricity generating event. I-REC Standard certificates fall into
a category of ‘attribute tracking certificates’, as is described in the GHG Protocol Scope 2 Guidance
Document, “A category of contractual instruments used in the energy sector to convey information
about energy generation to other entities involved in the sale, distribution, consumption, or
regulation of electricity.”
2.2 Roles in the I-REC system
Participant
Anyone wishing to hold or trade I-RECs must have at least one account on the I-REC registry.
Individuals or organisations with an account are referred to as a ‘participant’. End-consumers wishing
to purchase and redeem I-REC certificates can be participants and have their own accounts or they
can be clients of an existing market-player who will hold accounts on their behalf.
Registrant
Electricity generating facilities must be registered with the I-REC system before I-RECs can be issued.
Owners of these electricity generators are able to register their production stations and request I-REC
issuance on their own behalf, or through the appointment of a third-party agent. The individual or
organization tasked with registering the generating facility and requesting frequent I-REC issuance is
called a ‘registrant’. Registrants do not hold accounts on the I-REC registry, however an individual or
organisation can apply to be both a registrant and a participant if necessary.
Issuer
The issuer for a country or region may be a government agency or an independent entity preferably
acting with the recognition and support of the government authorities. The issuer controls the
registration of generating facilities, oversees and verifies the reporting of generation data, and issues
I-RECs based on reported generation. The issuer must have a contract with the I-REC organization,
which maintains the registry.
2.3 Steps in creating an I-REC standard certificate
All reliable attribute tracking certificates, such as an I-REC, undergo the steps of issuance,
documentation and redemption. For a better understanding of attribute tracking certificates the
following steps need to be understood.
Step 1:
Registering the generating facility with I-REC
Registration of a generating facility only needs to happen one-time and is completed by a registrant.
The registrant can be the facility owner themselves or a third-party working on behalf of the
electricity generator. The details of the production facility make up most of the attributes that
participants can claim when they redeem I-RECs produced from the generator. Other attributes
redeemed by participants come from the actual electricity generating event that was the reference
for the I-REC standard certificate issuance.
Step 2: Producing renewable electricity
Producers of electricity always must adhere to national regulations regarding the production of that
electricity. In each different national or regional electricity market these regulations will be different
(such as permitting responsibilities, electricity frequency management, grid balancing responsibilities,
etc.)
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