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  • Writer's pictureAnantaya Pornwichianwong

Renewable Energy Certificates (RECs): A Business Tool for Achieving Environmental Goals

Environment and sustainability have become important issues for businesses across various industries. They have also had an impact on modern business images and overall success.

As a result, businesses worldwide have set carbon-neutral and net-zero goals and transformed their operations to be more eco-friendly, such as by reducing their environmental footprint from business activities and offsetting carbon emissions by purchasing carbon credits.

In this article, Sertis would like to introduce readers to a tool that can help businesses achieve their environmental goals: Renewable Energy Certificates (RECs).

What are RECs, and how can they benefit businesses? Let's delve deeper into these questions in this article.

What are Renewable Energy Certificates (RECs)?

Renewable Energy Certificates (RECs) serve as proof of renewable energy production sourced from natural resources like wind, sunlight, water, biomass, and biogas. Renewable energy is sustainable and has a minimal environmental impact. Each REC represents 1 megawatt-hour (1MWh) of generated renewable energy.

RECs are a legal claim attesting to the generation and use of renewable energy, granting owners the right to make such claims. The International REC Standard (I-REC) from the Netherlands sets the standard for I-REC attributes. In Thailand, the Electricity Generating Authority of Thailand (EGAT) is responsible for issuing RECs.

There are two types of RECs:

  1. Bundled RECs are sold alongside the associated energy.

  2. Unbundled RECs are sold separately without the associated energy. In Thailand, only unbundled RECs are available.

How does purchasing Renewable Energy Certificates (RECs) benefit the environment?

Buying RECs contributes to and amplifies the demand for renewable energy in the market. The more RECs are sold, the greater the incentive for generating more renewable energy to meet this demand.

While unbundled RECs do not come with associated renewable energy that directly replaces fossil fuels to reduce environmental impact, they play a crucial role in supporting renewable energy generation in other regions around the world. Over time, this support can lead to a reduction in fossil fuel generation in those areas.

How does purchasing Renewable Energy Certificates (RECs) benefit businesses?

  1. Reducing greenhouse emissions: Whether businesses choose bundled or unbundled RECs, buying them contributes to a reduction in greenhouse emissions, thus lessening their environmental impact.

  2. Building an eco-friendly and sustainable image: Purchasing RECs signifies a commitment to eco-friendly and renewable energy practices. This supports a business's image as environmentally responsible and shows determination in reducing the environmental footprint of its activities.

  3. Achieving renewable energy goals: Many modern businesses set goals to minimize their environmental impact. RECs provide a valuable tool to help reach these goals, allowing businesses to indirectly offset carbon emissions, even when they can't fully replace fossil fuels with renewable energy due to certain limitations.

  4. Attracting green-minded customers: RECs enable businesses to legally claim the use of renewable energy, which can build trust with environmentally conscious customers and help businesses expand their reach in this target market.

  5. Mitigating future energy risks: Buying RECs and supporting renewable energy marketing can mitigate future energy risks, including the possibility of an energy crisis and price fluctuations. Although bundled RECs are currently unavailable in Thailand, if they are supported in the future, they could stabilize the energy supply.

  6. Cost-effective and easy to acquire: Unbundled RECs are readily available in the market, making them cost-effective and suitable for businesses looking to achieve their goals in the short term.

Purchasing RECs offers businesses a range of benefits, from reducing environmental impact to enhancing overall success. RECs can be a crucial mechanism in shaping a sustainable and stable future for all.

At Sertis, we provide AI and data solutions for the energy sector, unlocking technological potential to create solutions that not only protect the environment but also assist businesses in transitioning into eco-friendly organizations for the future.

Learn more about Sertis' solutions for energy sectors at:

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